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MACON WATER AUTHORITY
MACON, GEORGIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2017
Comprehensive Annual Financial Report
INTRODUCTORY SECTION
Macon Water Authority – Macon Georgia
i
Comprehensive Annual Financial Report
Year Ended September 30, 2017
Macon Water Authority – Macon, Georgia
Prepared by:
Financial Operations Department
Guy Boyle Executive Vice President, Business Operations &
Chief Financial Officer
ii
Comprehensive Annual Financial Report Table of Contents
Macon Water Authority
Page INTRODUCTORY SECTION
Title Page ................................................................................................................................................................... i
Table of Contents .......................................................................................................................................... ii and iii
Letter of Transmittal .......................................................................................................................................... iv - x
Certificate of Achievement ..................................................................................................................................... xi
Listing of Principal Officials and Consultants .................................................................................................... xii
Organizational Chart ............................................................................................................................................. xiii
FINANCIAL SECTION
Independent Auditor’s Report ........................................................................................................................... 1 - 3
Management’s Discussion and Analysis ........................................................................................................ 4 - 11
Basic Financial Statements:
Statement of Net Position .................................................................................................................... 12 and 13
Statement of Revenues, Expenses, and Changes in Net Position .............................................................. 14
Statement of Cash Flows ..................................................................................................................... 15 and 16
Notes to Financial Statements .................................................................................................................. 17 - 43
Required Supplementary Information:
Schedule of Changes in the Authority’s Net Pension Liability and Related Ratios ................................... 44
Schedule of Authority Contributions .............................................................................................................. 45
Schedule of Pension Investment Returns ...................................................................................................... 46
Schedule of Funding Progress ........................................................................................................................ 47
STATISTICAL SECTION
Statistical Section (Unaudited) Comments ......................................................................................................... 48
Net Position by Component ...................................................................................................................... 49 and 50
Changes in Net Position ........................................................................................................................................ 51
Operating Revenues by Source ............................................................................................................................ 52
Operating Expenses by Source ................................................................................................................ 53 and 54
Non-operating Revenues and Expenses ............................................................................................................. 55
Annual Capital Contributions from Developers .................................................................................................. 56
Water Produced, Consumed, and Wastewater Treated ..................................................................................... 57
Tap Sales................................................................................................................................................................. 58
Number of Water and Sewer Customers by Type .............................................................................................. 59
Water and Sewer Rates .................................................................................................................................. 60 - 63
iii
Comprehensive Annual Financial Report Table of Contents
Macon Water Authority
Page STATISTICAL SECTION (CONTINUED)
Ten Largest Customers ......................................................................................................................................... 64
Outstanding Debt by Type .................................................................................................................................... 65
Pledged Revenue Coverage .................................................................................................................................. 66
Demographic and Economic Statistics ............................................................................................................... 67
Principal Employers ............................................................................................................................................... 68
Number of Employees by Identifiable Activity ........................................................................................ 69 and 70
Operating and Capital Indicators ............................................................................................................. 71 and 72
COMPLIANCE SECTION
Independent Auditor’s Report on Internal Control over Financial
Reporting and on Compliance and Other Matters Based on
An Audit of Financial Statements Performed in Accordance with
Government Auditing Standards ................................................................................................. 73 and 74
Independent Auditor’s Report on Compliance for Each Major
Program and on Internal Control over Compliance
Required by the Uniform Guidance .................................................................................................. 75 - 77
Schedule of Expenditures of Federal Awards..................................................................................................... 78
Schedule of Findings and Questioned Costs for the Year Ended September 30, 2017 ..................... 79 and 80
iv
R.A. “Tony” Rojas Executive Director & President
Macon Water Authority 790 Second Street * P.O. Box 108
Macon, GA 31202-0108 (478) 464-5600 * FAX (478) 750-2007 Visit Us @ www.maconwater.org
Members Samual F. Hart, Sr., Chair Frank Patterson, Vice Chair Javors J. Lucas Dorothy “Dot” C. Black Dwight Jones Bert Bivins, III Gary Bechtel
February 28, 2018
Authority Members
The Macon Water Authority
Bibb County, Georgia
Macon, Georgia
The Macon Water Authority is required to publish, within six months of the close of each fiscal year, a complete
set of financial statements presented in conformity with general accepted accounting principles (GAAP) and
audited in accordance with generally accepted auditing standards (GAAS) by a firm of licensed certified public
accountants. Pursuant to that requirement, we hereby issue the comprehensive annual financial report of the
Macon Water Authority for the year ended September 30, 2017.
This report consists of management’s representations concerning the finances of the Macon Water Authority.
Consequently, management assumes responsibility for the completeness and reliability of all of the information
presented in this report. To provide a reasonable basis for making these representations, management of the
Macon Water Authority has established a comprehensive internal control framework that is designed both to
protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the
preparation of the Macon Water Authority’s financial statements in conformity with GAAP. The cost of internal
controls should not outweigh the benefits of those controls therefore the Macon Water Authority’s comprehensive
framework of internal controls has been designed to provide reasonable rather than absolute assurance that the
financial statements will be free from material misstatement. As management, we assert that, to the best of our
knowledge and belief, this financial report is complete and reliable in all material respects.
The Macon Water Authority’s financial statements have been audited by Mauldin & Jenkins LLC, a firm of
licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance
that the financial statements of the Macon Water Authority for the fiscal year ended September 30, 2017 are free
of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements; assessing the accounting principles used and significant
estimates made by management; and evaluating the overall financial statement presentation. The independent
auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion
that the Macon Water Authority’s financial statements for the year ended September 30, 2017, are presented in
conformity with GAAP. The independent auditor’s report is presented as the first component of the financial
section of this report.
v
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the
basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of
transmittal is designed to complement the MD&A and should be read in conjunction with it. The Macon Water
Authority’s MD&A can be found immediately following the report of the independent auditors.
PROFILE OF THE GOVERNMENT The Macon Water Authority (the “Authority”) was created by an act of the General Assembly of the State of
Georgia. The Authority is a body corporate and politic, which is deemed to be a political subdivision of the State
of Georgia and a public corporation, and was enacted by the General Assembly of Georgia by the provisions of
Ga. L. 1992, p. 4991, as amended (the “Act”), which amended an act known as the “Macon-Bibb County Water
and Sewerage Authority Act,” approved March 2, 1966, Ga. L. 1966, p. 2737, as amended. The Act was enacted
to provide a consolidated charter for the Authority, to change the name of the Authority to the Macon Water
Authority, and to reapportion and revise the boundaries of the five electoral districts provided for the Authority,
and for other purposes. The general purpose of the Authority is to secure for Macon-Bibb County, Georgia, a
satisfactory and reliable water and sanitary sewer system at the most reasonable cost possible and to make
such system and the services thereof available to public and private consumers in Macon-Bibb County and its
environs, including municipalities outside Macon-Bibb County and to adjoining counties.
The “Macon Water Authority Act” was further amended in 1999 so as to provide for additional purposes, powers,
and definitions. This amendment provides for matters having to do with industrial development and authorizes
the Authority to contract with the Macon-Bibb County Consolidated Government and the Macon-Bibb County
Industrial Authority with respect to the acquisition, construction, or development of industrial sites or facilities.
The “Macon Water Authority Act” was further amended in 2016 through SB 281 that permits the Authority to
contract with Macon-Bibb County and the Macon-Bibb County Industrial Authority for an additional 25 years.
In 2015, the Act was further amended to provide for the ability to operate a storm water utility as authorized by
and pursuant to an intergovernmental agreement with the governing body responsible for storm water control in
the areas served by the Authority, to provide storm water management services and to operate, maintain,
develop, repair, and construct a storm water management system and utility in areas served by the Authority.
The System (defined herein) does not currently include a storm water management system; however, the
Authority may take such actions and exercise such powers as authorized by the Act, as amended, and may
develop a storm water management system and utility to be owned and operated separate from the Water and
Sewer System or as part of the Water and Sewer System in the future.
The Macon Water Authority has a seven-member Board. One member is elected from each of five electoral
districts for a term of four years. Two members are appointed from the governing authority of Macon-Bibb
County Georgia. These two members serve at the pleasure of their appointing authority. Day-to-day operations
of the Authority are supervised by an Executive Director/President appointed by the Authority Board.
vi
The Authority operates under an annual Board approved budget. The budget, however, is not legally adopted
and thus budgetary comparisons are not presented in the accompanying financial statements. The Authority
utilizes a purchase order encumbrance system. All items are approved against the budget before being
purchased. Encumbrances lapse at the end of the fiscal year.
The Authority employs an enterprise fund concept to account for its operations which are financed and operated
in a manner similar to a private business enterprise. An enterprise fund is a proprietary fund and all proprietary
funds are accounted for using the accrual basis of accounting. Revenues are recognized when they are earned
and expenses are recognized when the service is received and the related liability is incurred. All utility service
receivables are recorded at year end. Since the Authority operates solely on its generated revenues, there are
no appropriations.
OVERVIEW OF THE SYSTEM Water Distribution The Authority provides both water distribution and sewer conveyance services to residential and non-residential
customers. The water Distribution System has approximately 1,665 miles of water mains and water distribution
lines serving approximately 50,000 metered customers. The Authority has one water treatment plant, the
Amerson Water Treatment Plant, located on the east bank of the Ocmulgee River in Jones County, GA. This
state of the art water treatment facility came on-line in early 2000.
The Amerson Water Treatment Plant intake draws water from the Ocmulgee River. The Authority has a
withdrawal permit that allows up to 110 million gallons a day to be withdrawn from the Ocmulgee River. During
peak customer demand periods during the summer months, the Amerson Plant often reaches and occasionally
exceeds a 35 million gallon per day demand level.
During the 1990’s, the Authority constructed and currently maintains the Javors Lucas Lake. This reservoir is
located on approximately 3,000 protected acres in Jones County Georgia. Lucas Lake is on the same grounds
as the Amerson Water Treatment Plant. Lucas Lake is an off-stream pump storage reservoir with a total
capacity of 5.9 billion gallons. It has been determined the reservoir can provide a safe yield of 72 million gallons
a day during extended drought conditions. The Amerson Water Treatment Plant, without any additional
modifications, is capable of producing up to 60 million gallons a day. In addition, the facility can be expanded to
90 million gallons a day with some modifications. Equipment and system redundancies allow the Amerson
Water Treatment Plant to continually operate without interruption. The State of Georgia’s Middle Ocmulgee
Regional Water Plan (adopted in 2011) made projections of drinking water capacity needs through the year 2050
and found that the Authority has more than sufficient capacity to meet demand projections.
The Authority is permitted to pump from the Ocmulgee River to the reservoir 110 million gallons a day in
December through May, when the river flow is 900 cubic feet per second, and in June through November, when
the river flow is 440 cubic feet per second. The Authority is permitted to pump a minimum of 35 MGD throughout
the year. In addition, Javors Lucas Lake and grounds provide a habitat for an abundance of wildlife.
vii
In addition to the Amerson Water Treatment Plant and Javors Lucas Lake, the Authority maintains 23 large
volume water storage tanks, which includes 4 clear-wells, and 7 major pump stations throughout the system.
Sewer Conveyance
The Authority operates a sewer conveyance system, which includes approximately 220 miles of interceptor
sewer lines and approximately 740 miles of sanitary sewer lines serving approximately 40,000 active sewer
customers. The collection system is supported by seven major pumping stations and forty-eight smaller
pumping stations located throughout the service network. Collected wastewater is treated at one of two
wastewater reclamation facilities, having a combined capacity of 48 million gallons per day. Wastewater
reclamation is processed at either the Rocky Creek Water Reclamation Facility with a capacity of 28 million
gallons per day or the Lower Poplar Water Reclamation Facility with a capacity of 20 million gallons per day.
Macon Soils
The Authority operates Macon Soils, an Authority subsidiary that handles the recycling of bio solids. Bio solids
are a byproduct of the wastewater treatment process performed at the Authority's wastewater reclamation
facilities. These bio solids are land applied to area farms for agricultural benefit. Macon Soils also contracts with
other water utilities to provide bio solid pickup and transport to area farms.
Macon Water Environmental Education, Inc., (dba Macon Water Alliance)
The Authority founded Macon Water Environmental Education Incorporated (dba Macon Water Alliance) as a
Georgia Non-Profit Corporation in 2015. The objective(s) of the Macon Water Alliance from its’ inception has
been to fund, maintain, operate and provide an environmental enhancement, education and water resource
focused assistance organization for the residents of Middle Georgia. The Macon Water Alliance was established
as a 501c3 corporation in order to solicit, receive and maintain funds for the support and enhancement of
community education on environmental issues; to solicit and receive donation of funds to be used for community
enhancement, educational activities, and water resource focused assistance programs.
Reinvesting in Our Infrastructure
The Authority continues to plan and successfully execute capital reinvestment strategies that have upgraded and
rehabilitated the infrastructure of our system to ensure that future generations of Macon-Bibb County residents
are provided with a clean, worry free source of water delivery and sewer reclamation services. This vision has
consistently taken a pro-active approach to identifying aging parts of the system, planning for appropriate
financing sources and repairing and replacing the system infrastructure in a timely and cost efficient manner.
The Authority passed a bond resolution in December 2015 and issued $10,000,000 in water and sewer revenue
bonds. This bond issue has been used to finance replacement, repair and upgrades to both waste water
reclamation plants. The Board and MWA management continue to focus on conservative operational and
financial planning for the Authority. This planning will ensure that future generations of customers will continue
to have uninterrupted delivery of clean water and wastewater reclamation services.
viii
FACTORS AFFECTING FINANCIAL CONDITION
The information presented in the financial statements is perhaps best understood when it is considered from the
broader perspective of the specific environment within which the Authority operates.
Local Economy
Macon – Bibb County Georgia is located in the approximate geographic center of the state of Georgia. Two
major interstate highway systems, I-75 & I-16, pass through Macon – Bibb County. Interstate 75 connects
Macon-Bibb to Atlanta to the North and to Warner Robins, Georgia and points in Florida to the South. Interstate
16 connects Macon-Bibb to the Georgia coastal communities including the Port of Savannah to the East as well
as the Florida coastal communities. Macon-Bibb occupies a strategic position on the bank of the Ocmulgee
River, and is located approximately 80 miles south of Atlanta, Georgia. The proximity of Macon-Bibb to Atlanta,
Warner Robins, Georgia and the Savannah Port Authority has helped to contribute to the strong economic
position that this community has enjoyed over the years.
The Middle Georgia area has a long history of commitment to higher education and is home to a number of
Universities and Colleges, including Mercer University, Georgia College & State University, Middle Georgia State
University, Wesleyan College and Central Georgia Technical College.
One of the strengths of the local economy is diversification of the types of industries located in Macon-Bibb
County. The many health professions, insurance, education, trade, manufacturing, lodging and food service
firms provide large numbers of well-paying jobs for the community. Large multi-national aerospace and
government contracting firms also provide large numbers of well-paying jobs for area residents. The state of
Georgia’s largest employer and the state’s largest industrial complex is Robins Air Force Base, located in
adjoining Houston County, Georgia. Robins is home to the Air Force Material Command’s Warner Robins Air
Logistics Center. This command is the worldwide manager for a wide range of military aircraft, engines,
missiles, software and avionics. This Robins industrial complex employs approximately 22,000 maintenance and
logistics workers in Middle Georgia. The base has an estimated $2.7 billion dollar economic impact for the state
of Georgia and the surrounding communities in Middle Georgia.
Industrial Partnership Existing industry expansion and new industry recruitment are integral to sustaining the County’s economic vitality
over the long-term. The Macon Water Authority’s’ leadership, Macon-Bibb County leadership, and the Macon-
Bibb County Industrial Authority have continued to work together to make the Middle Georgia region an attractive
destination for new businesses as well as expansion of existing business operations. During 2017 a number of
companies made firm commitments for expansion or reinvestment in the Macon-Bibb County community. These
firms included a $12 million dollar investment by Star Snacks and 115 jobs; a $90 million dollar investment by
Tyson Foods and 102 new jobs and 147 retained jobs; a $400 million dollar investment by Irving Consumer
Products and 200 jobs; a $90 million dollar investment by Amazon and 600 jobs; and a $136 million dollar
investment by Graphic Packaging International and 460 jobs retained. The economic impact resulted in 1,017
new jobs created, 607 existing jobs retained and nearly $700 million in new investment in the community.
ix
Long-term Financial & Operational Planning
The Authority has developed a capital improvement plan that identifies water distribution and wastewater
reclamation line extensions, upgrades and replacements to older sewers and lift stations throughout the system.
To insure that there is adequate funding available to finance the capital improvement initiatives, the Executive
Director/President and the various department managers have developed a rolling five-year financial plan.
Consideration has been given to expected increases/decreases in revenues as well as projecting costs of the
future projects. This capital planning, which is reviewed each year prior to the start of the operating budget
process, provides guidance through the Fiscal Year 2022.
In addition, the Authority completed a Water Distribution Master Plan that considered Macon - Bibb County’s
needs for a twenty year planning period. Growth was based on Georgia Department of Transportation
population projections coupled with input from the Macon-Bibb Planning and Zoning Department. Of particular
interest were impacts on the water distribution system from the private manufacturing and distribution sectors
due to their large daily demands and/or fire protection requirements. Recommendations include capital
improvement projects and energy conserving operational changes. A sophisticated operational level computer
model was a part of the Master Plan work, a tool to serve MWA staff for many years to come.
AWARDS
The Macon Water Authority was the recipient of a number of prestigious awards during the year and we would
like to highlight a few of those awards.
The Georgia Water Coalition recognized the MWA as one of its 2017 recipients of the Clean 13 Award.
The Clean 13 is a list recognizing the extraordinary work accomplished by individuals, businesses,
industries, non-profit organizations, as well as state and local governments to protect Georgia’s water.
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the Macon Water Authority for its
comprehensive annual financial report for the fiscal year ended September 30, 2016. This was the
twentieth consecutive year that this Water Authority has received this prestigious award. In order to be
awarded a Certificate of Achievement, a government must publish an easily readable and efficiently
organized comprehensive annual financial report (CAFR). This report must satisfy both generally
accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid
for a period of one year. We believe that our current CAFR continues to meet the Certificate of
Achievement Program’s requirements, and we are submitting it to the GFOA to determine its eligibility
for another certificate.
The GFOA also awarded the Authority the Award for Outstanding Achievement in Popular Annual
Financial Reporting for our Fiscal Year 2016 report. It was the fifth consecutive year the Authority was
awarded this honor. The Authority is the only Governmental Utility in the state of Georgia to have
earned this award from the GFOA.
x
AWARDS (CONTINUED)
The Authority received the Collection System Platinum Award from the Georgia Association of Water
Professionals for achieving a grade of 95 or higher for at least five consecutive years on annual reviews
of operations by industry judges
The Authority received the 2017 GAWP Water Distribution System Gold Award for achieving quality
scores of 95 or higher this past year on the annual review of its water utility operations by industry
judges.
The MWA’s Rocky Creek Water Reclamation Facility won the GAWP Platinum Award for 100% permit
compliance for the 18th consecutive year.
The MWA’s Lower Poplar Water Reclamation Facility won the GAWP Gold Award for 100% compliance
during the operating year of 2016
The Amerson Water Treatment Plant won the GAWP Gold Award for 100% compliance in 2016.
The Authority received the annual Safety Award from the Georgia section of the American Water Works
Association following an annual inspection of the facility for preparation and protocol to assure the safety
of employees and customers of the Amerson Water Treatment Plant.
The preparation of this report on a timely basis could not be accomplished without the efficient and dedicated
services of the entire finance and administrative staff of the Authority. We would like to express our appreciation
to all of the employees of the Macon Water Authority who contributed to this report’s preparation. We would also
like to thank the Authority Members for their interest and support in planning and conducting the financial
operations of the Authority in a responsible and progressive manner.
Respectfully submitted,
Guy Boyle Arleen Brown Samuels
Executive Vice President, Accounting Manager
Business Operations
Government Finance Officers Association
Certificate of Achievement for Excellence
in Financial Reporting
Presented to
Macon Water Authority
Georgia
For its Comprehensive Annual Financial Report
for the Fiscal Year Ended
September 30, 2016
P fitrott:te
Executive Director/CEO
xi
xii
Listing of Principal Officials and Consultants
As of September 30, 2017
Macon Water Authority
Board MembersSam F. Hart, Sr., Chairman
Frank Patterson, Vice ChairmanDorothy "Dot" C. Black
Javors J. LucasDwight JonesBert Bivens, IIIGary Bechtel
Executive Director & PresidentRobert A. Rojas
Executive Vice President, Field & Plant OperationsJess R. Shell, P.E.
Executive Vice President, Business Operations &Chief Financial Officer
Guy Boyle
AuditorsMAULDIN & JENKINS, LLC
xiii
Comprehensive Annual Financial Report
FINANCIAL SECTION
Macon Water Authority – Macon Georgia
300 MULBERRY STREET, SUITE 300 • POST OFFICE BOX 1877 • MACON, GEORGIA 31202-1877 • 478-464-8000 • FAX 478-464-8051 • www.mjcpa.com MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITOR’S REPORT
To the Macon Water Authority
Macon, Georgia
Report on the Financial Statements
We have audited the accompanying financial statements of the Macon Water Authority (the “Authority”) as of
and for the year ended September 30, 2017, and the related notes to the financial statements, which collectively
comprise the Authority’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of
the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no
such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
2
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of the Authority as of September 30, 2017 and the changes in financial position and cash flows for the
year then ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s
Discussion and Analysis (on pages 4 – 11) and the Schedule of Changes in the Authority’s Net Pension Liability
and Related Ratios, Schedule of Authority Contributions, Schedule of Pension Investment Returns, and Schedule
of Funding Progress (on pages 44 through 47) be presented to supplement the basic financial statements. Such
information, although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic, or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with auditing standards generally accepted
in the United States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management's responses to our inquiries, the
basic financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited procedures do not
provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively
comprise the Authority’s basic financial statements. The introductory section and the statistical section are
presented for purposes of additional analysis and are not a required part of the basic financial statements. The
schedule of expenditures of federal awards is presented for purposes of additional analysis as required by Title 2
U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements.
3
The schedule of expenditures of federal awards are the responsibility of management and were derived from and
relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such
information has been subjected to the auditing procedures applied in the audit of the basic financial statements
and certain additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in the
United States of America. In our opinion, the schedule of expenditures of federal awards are fairly stated in all
material respects in relation to the basic financial statements as a whole.
The introductory section and the statistical section have not been subjected to the auditing procedures applied in
the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any
assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated February 28, 2018, on
our consideration of the Authority’s internal control over financial reporting and on our tests of its compliance with
certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that
report is to describe the scope of our testing of internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing Standards in
considering the Authority’s internal control over financial reporting and compliance.
Macon, Georgia
February 28, 2018
Management’s Discussion and Analysis
September 30, 2017
Macon Water Authority
4
As management of the Macon Water Authority (“Authority”), we offer readers of the Authority’s financial
statements this narrative overview and analysis of the financial activities of the Authority for the fiscal year ended
September 30, 2017. We encourage readers to consider the information presented here in conjunction with the
financial statements and footnotes.
Operating Highlights The Authority treats and distributes potable water and collects and treats wastewater in Macon-Bibb County
(“Macon-Bibb”) and its environs. To accomplish these functions the Authority:
Operates the Amerson Water Treatment Plant which is capable of treating up to 60
million gallons per day (MGD) to meet peak day demands. The principal source of
water is the Ocmulgee River and is augmented by the Authority’s Javors Lucas Lake
Reservoir which holds approximately 5.9 billion gallons of water.
Serves approximately 50,000 metered water accounts through a water distribution
system which contains over 1,665 miles of water mains and lines.
Serves approximately 40,000 wastewater customers through a wastewater collection
system that includes 960 miles of sewers including 220 miles of major interceptor
sewers up to 60 inches in diameter.
Treats the collected wastewater at one of two wastewater reclamation control plants
(WWRCP) locations. The largest is the Rocky Creek WWRCP which is rated at a
capacity of 28 MGD. Total daily capacity of both of our wastewater reclamation plants
is 48 MGD.
Financial Highlights
The Authority’s net position (amount assets exceeded liabilities) at the close of the
fiscal year amounted to $217,071,103 (net position). Of this amount, $21,480,301 was
restricted in its use in future periods.
The Authority’s total net position increased by $3,903,385 during the fiscal year ended
September 30, 2017. This net change is further reflected in the Authority’s statement
of revenues, expenses and changes in net position.
Management’s Discussion and Analysis
September 30, 2017
Macon Water Authority
5
Financial Highlights (Continued)
The Authority’s total long-term debt (including current maturities for bonds, capital
leases and notes) decreased by $5,422,266 (or approximately 5.7%) during the
current fiscal year.
Actuarially determined long term liabilities for the Employee Defined Benefits Pension
plan and Other Post Employment Employee Benefits (OPEB) decreased $1,026,435
during the year. This change was largely driven by a $1.9 million dollar decrease in
pension liability due to the continued additional annual pension plan funding by the
Authority.
The Authority had operating revenues of $54,190,163 during the current year.
Operating revenues increased by approximately 4.0% over the prior year.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction of the Macon Water Authority’s basic financial
statements. The statement of net position presents information on all of the Authority’s assets and liabilities, with
the difference between the two reported as net position. Over time, increases or decreases in net position may
serve as a useful indicator of whether the financial position of the Authority is improving or deteriorating.
The statement of revenues, expenses and changes in net position presents information showing how the
Authority’s net position changed during the most recent fiscal year. All changes in net position are reported on an
accrual basis.
The Authority implemented GASB Statements No. 63, Financial Reporting of Deferred Outflows of Resources,
Deferred Inflows of Resources, and Net Position and No. 65, Items Previously Reported as Assets and Liabilities,
as of October 1, 2012. These standards establish accounting and financial reporting for deferred outflows/inflows
of resources and the concept of net position as the residual of all other elements presented in a statement of net
position. The Authority implemented Governmental Accounting Standards Board (GASB) Statement No. 68,
Accounting and Financial Reporting for Pensions – an amendment of GASB Statement No. 27, as well as
Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date – an
amendment of GASB Statement No. 68, as of October 1, 2014. These standards significantly changed the
accounting for the Authority’s net pension liability and the related disclosures. These changes are further
discussed in footnote one and six.
Management’s Discussion and Analysis
September 30, 2017
Macon Water Authority
6
Financial Statements
Net Position: The following table reflects the overall financial condition of the Authority as of the last two (2)
fiscal years ended September 30, 2017 and 2016, respectively.
Other assets $ 104,979,328 $ 106,734,236Capital assets 215,345,673 216,769,446
Total assets 320,325,001 323,503,682
Deferred charges on refundings 349,190 510,925Pension 7,162,027 8,083,614
Total deferred outflows 7,511,217 8,594,539
13,923,295 15,537,12296,254,505 103,142,051
Total liabilities 110,177,800 118,679,173
Pension 587,315 251,330.00 Total deferred inflows 587,315 251,330.00
131,336,350 126,912,86712,132,439 34,071,995
Restricted for capital projects 9,347,862 9,541,07164,254,452 42,641,785
Total net position $ 217,071,103 $ 213,167,718
2017 2016
Restricted for debt service
Unrestricted
Current liabilitiesNoncurrent liabilities
Net investment in capital assets
The Authority’s Other Assets decreased from $106,734,236 at the beginning of the fiscal year to $104,679,328 at
the end of the year. Elements to consider related to this change include:
Cash and cash equivalents increased from $35,826,277 to $56,593,327. The Authority has maintained adequate
cash balances as it plans to continue major work on its infrastructure while financing as much as possible with
internally generated funds. As part of Authority treasury long term planning, adequate cash reserves are on-hand
to allow flexibility on the issuance of variable rate water and sewer revenue bonds in lieu of fixed rate debt.
Management’s Discussion and Analysis
September 30, 2017
Macon Water Authority
7
Financial Statements (Continued)
Restricted assets: Cash and Investments – decreased from $50,020,473 to $28,252,395.
One of the main drivers of this reduction in restricted assets was the refunding of
$13,630,000 in variable rate water & sewer revenue bonds that required the Authority to
restrict funds in order to provide our own self liquidity in the event of a failed remarketing of
these variable rate bonds. Once these bonds were refunded, the funds were no longer
required to be restricted for this purpose. The overall cash and investment position of the
Authority, including both restricted and unrestricted cash, cash equivalents and investments,
changed very little year over year from $96,742.115 in fiscal year 2016 to $95,633,384 in
2017.
Accounts Receivable from Customers decreased ever so slightly from $5,747,879 in 2016 to
$5,625,310 in 2017.
Other receivables decreased from $1,214,412 to $856,368.
Inventory of materials and supplies decreased from $2,211,810 to $1,974,856. The
decrease is driven by the Authorities carrying inventory for parts for anticipated maintenance
projects being reduced. Investments decreased from $10,895,365 in 2016 to $10,787,662 in 2017.
Capital assets decreased from $216,769,446 to $215,345,673. This caption includes the aggregation of property
and equipment, net, and construction work in progress. Depreciation expense increased ever so slightly from
$14,555,548 in 2016 to $14,598,444 during 2017.
The Authority’s total current liabilities decreased significantly from $15,537,122 in 2016 to $13,923,295 in 2017, a
10.4% reduction in current liabilities. Current liabilities include liabilities which are due and payable within the next
fiscal year. Elements of this caption on the statement of net position include:
Current portion of long-term debts and the respective accrued interest (notes and revenue
bonds) increased from $6,840,466 during 2016 to $7,326,110 in 2017.
Trade payables decreased from $1,979,346 to $1,779,781, a 10.1% decrease year over
year.
Management’s Discussion and Analysis
September 30, 2017
Macon Water Authority
8
Financial Statements (Continued)
Intergovernmental payables decreased from $4,463,141 to $2,480,611. Intergovernmental
payables are comprised of two agreements. The first is between the Macon Water Authority
(MWA) and the Macon-Bibb County Georgia Consolidated Government. Annual funding
provided by the MWA totals $304,990 for the Macon-Bibb County landfill as well as
continued maintenance, if needed, of the flood control levee near the Ocmulgee River and
its tributaries. The second agreement is between the MWA and the Macon-Bibb County
Industrial Authority. The MWA provides funding in the amount of $704,000 a year for
industrial development. The decrease of $1,982,530 between 2017 and 2016 was the result
of draws on the account by the Macon Bibb County Industrial Authority for land acquisition to
increase land inventory for industrial and commercial growth within Macon-Bibb County
Georgia as well as ongoing Industrial Park area maintenance.
Customer deposits increased from $768,969 in 2016 to $822,376 in 2017. The MWA
continues to aggressively refund deposits to customers that meet the criteria for refunding
on a timely basis.
Other payables, construction decreased from $425,043 to $207,654. The decreases in
year-end payables were a result of fewer projects remaining open at year end than in the
previous year.
Accrued workers’ compensation & health benefits increased from $318,128 in 2016 to
$572,980 in 2017.
Total noncurrent liabilities decreased from $103,142,051 in 2016 to $96,254,505 in 2017, a decrease of
$6,887,546. This caption reflects liabilities of the Authority not projected to be due and payable during the next
fiscal year. This includes certain notes payable and water and sewer revenue bonds as well as actuarially
determined long term liabilities of the MWA employee defined benefits pension plan and the other post-
employment benefit (OPEB) plan. This net decrease was primarily driven by a reduction in revenue bonds
payable of $9.3 million due to refunding of variable rate revenue bonds. In addition the Authority drew an
additional $3,535,626 in GEFA loan financing to complete a number of sewer projects. Footnotes five and six
address both long term liabilities and actuarial determined pension plan liabilities.
The Authority’s net position increased by just under 2.0% between fiscal year 2016 and 2017 from $213,167,718
to $217,071,103.
Revenues, Expenses and Changes in Net Position: The Authority recognized a 4.0% increase in operating
revenues and a 4.5% increase in year over year operating expenses.
Management’s Discussion and Analysis
September 30, 2017
Macon Water Authority
9
Financial Statements (Continued)
Total operating revenues of the Authority increased from $52,123,494 to $54,190,163. This represents a 4.0%
year over year increase. Water revenues increased 3.2% from $25,685.274 to $26,514,959. Sewer revenues
increased 4.1% from $23,134,227 to $24,085,847. The increase in water sales and sewer sales was primarily
due to a .10 cent increase in rate per CCF that took effect January 1, 2017.
Other operating revenues increased from $3,303,993 during 2016 to $3,589,397 in 2017, an increase of 8.65%.
Other operating revenues include revenues from sewer tap fees, water tap fees, water and sewer extension fees,
basin specific fees, grease trap permits, and application fees.
Total operating expenses, including depreciation, of the Authority increased from $47,494,153 to $49,634,872 in
2017. This represents a 4.5% increase, or $2,140,719. Depreciation expense increased from $14,555,548 to
$14,598,444. The result of these changes in revenues and expenses produced an overall net operating income
(Total Operating Revenues – Total Operating Expenses) of $4,555,291 in fiscal year 2017. This follows a strong
operating net income from the preceding year of $4,629,341.
The Authority continued to fund the employee defined pension plan over and above legal requirements. During
2017 the Authority contributed an additional $750,000 to the plan vs. 2016 and total employer contributions
totaled $2,111,565. Pension expense is included in the departmental operating numbers.
Non-operating income (expense) includes interest income and expense on the Authority’s debt as well as revenue
(expense) associated with contractual agreements with other local governments. In addition the Authority
recognized gains of $2,411,801 on the divestiture of real property during fiscal year 2017.
Non-Operating Income increased from $637,625 in 2016 to $3,130,287 in 2017 with
$2,411,801 of the increase being accounted for by the divestiture of real property
Non-Operating decreased slightly from $3,948,120 in 2016 to $3,901,019 in 2017
Gains and losses on disposal of assets are also included in the non-operating income (expense) section. The
Authority realized no loss on disposal of assets during 2017. Capital contributions include capital contributions by developers or other agencies and amounted to $118,826
during 2017 versus $179,060 during the previous year.
Management’s Discussion and Analysis
September 30, 2017
Macon Water Authority
10
The following table illustrates the history of revenues, expenses and changes in net position for the past two (2)
years ended September 30, 2017 and 2016, respectively.
Water revenues $ 26,514,959 $ 25,685,274Sewage revenues 24,085,807 23,134,227Other operating revenues 3,589,397 3,303,993
Operating revenues 54,190,163 52,123,494
718,486 637,6252,411,801 -
Non-operating revenues 3,130,287 637,625
57,320,450 52,761,119
3,696,241 3,438,5316,010,513 5,749,5735,963,550 5,652,0594,659,047 3,883,8262,596,498 1,915,170
Engineering 1,734,852 1,622,576Customer care 5,684,180 4,617,805
4,691,547 6,059,06514,598,444 14,555,548
Operating expenses 49,634,872 47,494,153
2,892,029 2,939,130704,000 704,000304,990 304,990
Non-operating expenses 3,901,019 3,948,120
53,535,891 51,442,273
118,826 179,060
3,903,385 1,497,906
213,167,718 211,669,812
$ 217,071,103 $ 213,167,718
Total net position, beginning of year
Total net position, ending of year
Maintenance
Administrative and generalDepreciation
Non-operating expenses:Interest and amortization expenses
Change in net position
Water distributionWater pollution control plantsSewage conveyance
Total Expenses
Capital contributions
City of Macon assistanceMacon-Bibb County Industrial assistance
Total Revenues
Operating expenses:Water plant
2017 2016Operating revenues:
Non-operating incomeInterest incomeGain on the disposal of capital assets
Management’s Discussion and Analysis
September 30, 2017
Macon Water Authority
11
Capital Asset and Debt Administration
Capital Assets: The Authority’s investment in depreciable capital assets as of September 30, 2017, was
$198,495,959 (net of accumulated depreciation) and $16,849,714 in non-depreciable capital assets. This
investment in capital assets includes the reservoir, buildings, systems, improvements, vehicles and equipment,
and non-depreciable assets includes land and construction in process.
Additional information on the Authority’s capital assets can be found in Note 4 to the financial statements.
Debt Administration: As an Authority created by an act of the General Assembly of the State of Georgia, long-
term borrowing by the Authority is provided through water and sewer revenue bonds issued by the Authority and
debt incurred to the Georgia Environmental Finance Authority (GEFA) for construction of various water and sewer
system projects. At the end of the current fiscal year, the Authority had total long-term debt outstanding of
$86,516,309 down from the $92,007,264 reported in fiscal year 2016. This is before unamortized premiums of
$2,963,004 are taken into consideration. This long term debt was comprised of $79,540,000 in water and sewer
revenue bonds payable, $193,260 in capital leases and $6,783,049 payable to the Georgia Environmental
Finance Authority on long term fixed rate notes. In addition, with the adoption of GASB 68 in previous years, net
pension liability and other post employee retirement benefits (OPEB) liability as of September 30, 2017, were
$10,461,511 and $2,230,585 respectively.
Additional information on the Authority’s long-term debt can be found in Note 5 to the financial statement and
pension comments are available in Note 6.
Currently Known Conditions Affecting Future Operations
The Management of the Authority knows of no current conditions which would affect future operations. The
Authority has placed into effect a schedule of rates, fees and charges for the services, facilities and commodities
furnished by the Authority to produce sufficient revenues for both the water and sewer systems to cover operating
expenses for each system, their share of the administrative and general expenses, and to meet the debt service
requirements of the outstanding bond issues.
Further Information
This financial overview is designed to provide readers with a general overview of the Authority’s finances, and to
show accountability. If you have questions or would like further information about this financial report, you may
contact officials at P.O. Box 108, Macon, Georgia 31202-0108. The Authority's street address is 790 Second
Street, Macon, Georgia 31202.
12
Statement of Net Position
As of September 30, 2017
Macon Water Authority
CURRENT ASSETS: Cash and cash equivalents $ 56,593,327
Investments 10,787,662 Receivables:
Customers, less allowance for doubtful amountsand rebates, $1,339,011 5,625,310
Other receivables 856,368 Inventory of materials and supplies 1,974,856 Prepaid expenses 889,410 Restricted assets: Cash 22,831,555
Investments 5,420,840
Total current assets 104,979,328
NON-CURRENT ASSETS:Capital assets:
Non-depreciable assets 16,849,714 Depreciable assets, net of accumulated depreciation 198,495,959
Total non-current assets 215,345,673
Total assets 320,325,001
Deferred charges on refunding 349,190 Pension 7,162,027
Total deferred outflows of resources $ 7,511,217
See Notes to Financial Statements.
ASSETS
DEFERRED OUTFLOWS OF RESOURCES
13
LIABILITIES CURRENT LIABILITIES (payable from current assets):
Notes payable, due within one year $ 618,483Capital lease payable, due within one year 68,421Trade payables 1,779,781Other payables, construction 207,654Intergovernmental payables 2,480,611Payroll taxes and deductions payable 733,783Customer deposits 822,376Accrued workers' compensation & health benefits 572,980Revenue bonds payable, due within one year 5,230,000Accrued interest payable on revenue bonds 1,409,206
Total current liabilities 13,923,295
NON-CURRENT LIABILITIES: Notes payable 6,164,566Capital lease payable 124,839Revenue bonds payable, less portion due within one year 77,273,004Net OPEB obligation 2,230,585Net pension liability 10,461,511
Total non-current liabilities 96,254,505
Total liabilities 110,177,800
Pension 587,315
Total deferred inflows of resources 587,315
Net investment in capital assets 131,336,350 Restricted for debt service 12,132,439 Restricted for capital projects 9,347,862Unrestricted 64,254,452
Total net position $ 217,071,103
LIABILITIES
DEFERRED INFLOWS OF RESOURCES
NET POSITION
14
Statement of Revenues, Expenses, and Changes in Net Position
For the year ended September 30, 2017
Macon Water Authority
OPERATING REVENUES:Water revenues $ 26,514,959Sewage revenues 24,085,807
Other operating revenues 3,589,397 Total operating revenues 54,190,163
OPERATING EXPENSES:Water plant 3,696,241Water distribution 6,010,513Water reclamation 5,963,550Sewer conveyance 4,659,047Maintenance 2,596,498Engineering 1,734,852Customer care and field operations 5,684,180General and administrative 4,691,547Depreciation 14,598,444
Total operating expenses 49,634,872
Operating income 4,555,291
NON-OPERATING INCOME:Investment earnings 718,486 Gain on the disposal of capital assets 2,411,801
Total non-operating income 3,130,287
NON-OPERATING EXPENSES:Interest and amortization expense 2,892,029
Macon-Bibb County Industrial Authority assistance 704,000 City of Macon assistance 304,990
Total non-operating expenses 3,901,019
Income before contributions 3,784,559
CAPITAL CONTRIBUTIONS 118,826
Change in net position 3,903,385
NET POSITION, beginning of year 213,167,718
NET POSITION, end of year $ 217,071,103
See Notes to Financial Statements.
15
Statement of Cash Flows
For the year ended September 30, 2017
Macon Water Authority
CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers and users $ 54,159,346
Cash paid to suppliers for goods and services (21,718,841) Cash paid to employees for services (15,517,917)
Net cash provided by operating activities 16,922,588
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Purchases and construction of property and equipment (14,724,628) Proceeds from the sale of capital assets 4,080,584 Payments on capital lease payable (80,426) Payments on notes payable (364,638) Payments on revenue bonds payable (18,675,000) Proceeds from notes payable 4,154,109 Proceeds from revenue bonds payable 9,475,000 Interest paid (2,614,806)
Net cash used in capital and related financing activities (18,749,805)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from the sale of investments 162,671 Interest and dividends received 718,486
Net cash provided investing activities $ 881,157
See Notes to Financial Statements.
16
NET CHANGE IN CASH $ (946,060)
CASH AND CASH EQUIVALENTS:
Beginning of year (including $44,544,665 in restricted assets) 80,370,942
End of year (including $22,831,555 in restricted assets) $ 79,424,882
RECONCILIATION OF NET OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES
Operating income $ 4,555,291
Non-cash expenses included in operating activities:Depreciation 14,598,444 Provision for doubtful accounts 153,386
Changes in assets and liabilities:Increase in receivables (30,817)
Decrease in other receivables 358,044 Decrease in inventory of materials & supplies 236,954 Increase in prepaid expenses (71,390)
Decrease in deferred outflows of resources 921,587 Decrease in trade payables (3,191,085) Decrease in other payables, construction (217,389) Decrease in accrued payroll taxes and deductions payable (8,246) Increase in customer deposits 53,407
Increase in accrued workers' compensation & health benefits 254,852 Decrease in net pension liability (1,863,284) Increase in deferred inflows of resources 335,985
Increase in net OPEB obligation 836,849 Net cash provided by operating activities $ 16,922,588
NONCASH INVESTING, CAPITAL, AND FINANCING ACTIVITIESContribution of capital assets from developers $ 118,826
Notes to Financial Statements September 30, 2017
Macon Water Authority
17
NOTE 1. NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES
Nature of Business
The Macon Water Authority (Authority) is a governmental proprietary body which provides water
and related services to approximately 50,000 water and 40,000 sewer customers primarily in
Macon and Bibb County, Georgia. Related services include: water treatment; wastewater
treatment; maintenance of water and sewer lines; and installation of new water and sewer lines.
The following is a summary of the more significant accounting policies of the Authority:
Reporting Entity
The Authority has implemented the provisions of Statement No. 14 of the Governmental
Accounting Standards Board (GASB), The Financial Reporting Entity, as amended by GASB
39, Determining Whether Certain Organizations Are Component Units and GASB 61, The
Financial Reporting Entity: Omnibus. As defined by the GASB, the financial reporting entity is
comprised of the primary government, and its component unit. The primary government
includes all departments and operations of the Authority which are not legally separate
organizations. Component units are legally separate organizations which are fiscally
dependent on the Authority or for which the Authority is financially accountable. An
organization is fiscally dependent if it must receive the Authority’s approval for its budget,
levying of taxes or issuance of debt. The Authority is financially accountable for an
organization if it appoints a majority of the organization’s board, and either a) has the ability to
impose its will on the organization or b) there is the potential for the organization to provide a
financial benefit to or impose a financial burden on the Authority.
Governance. The Authority has seven members. One member, who serves as Chairman of
the Authority, is elected from district five which is made up of all the other districts for a term of
four years. One member is elected from each of four electoral districts for a term of four years.
Two members are appointed by the Macon-Bibb County Government. These members serve
at the pleasure of the appointing authority. None of the participating governments appoints a
majority of the Authority’s board and none has an ongoing financial interest or responsibility.
Notes to Financial Statements September 30, 2017
Macon Water Authority
18
NOTE 1. NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Reporting Entity (Continued)
Other Relationships
Macon-Bibb County Industrial Authority (MBCIA). During the year ended
September 30, 1999, the State of Georgia General Assembly passed legislation permitting the
Authority to participate with the City of Macon and Bibb County, with respect to industrial
development involving the acquisition, construction or development of industrial sites or
facilities. This includes entering into contracts with the Macon-Bibb County, the MBCIA, or
both, with respect to acquiring and developing industrial sites and facilities, including, without
limitation, the construction or renovation of buildings and facilities for lease or sale to industrial
or other companies providing employment within Macon-Bibb County. The Authority may
utilize its revenues for the performance of such contracts; however, such contracts may not be
in excess of $704,000 on an annual basis through the year ending September 30, 2023.
During the year ended September 30, 2017, legislation was passed to extend the agreement
through the year ending September 30, 2048. The balance due to the MBCIA as of
September 30, 2017 is $1,016,586.
City of Macon (now Macon-Bibb County). During the year ended September 30, 2011 (but
effective as of July 1, 2010), the Authority entered into an intergovernmental agreement to
provide assistance to the City of Macon (now Macon-Bibb County) relative to the City landfill
(or landfills) closure and post-closure costs as well as continued construction and maintenance
of the flood control levies near the Ocmulgee River and its tributaries. The ultimate goals of
such funding are: (a) to preserve the viability and availability of clean, safe drinking water to the
citizens of Macon and Bibb County consistent with purposes of the Authority; and (2) to protect
the water and sewer facilities and to prevent potential disruption or failure to such facilities
during flood events. The Authority may utilize its revenues for the funding of this
intergovernmental agreement; however, such funding may not be in excess of $304,990 on an
annual basis through the year ending September 30, 2035. In recognition of the responsibility
of the Authority relative to this agreement, a balance is due to Macon-Bibb County as of
September 30, 2017 of $1,464,025.
Notes to Financial Statements September 30, 2017
Macon Water Authority
19
NOTE 1. NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Reporting Entity (Continued)
Other Relationships (Continued)
Macon-Bibb County Industrial Authority (MBCIA). During the year ended
September 30, 2017, the Authority entered into an intergovernmental services agreement to
provide assistance to the MBCIA with respect to (i) marketing of the Authority and MBCIA
properties, (ii) marketing and promotion of water and sewer capacity, in order to enhance water
and sewer sales growth in transactions involving the MBCIA, the Authority, and/or both, (iii)
promotion, strategic planning and related activities, (iv) marketing, managing, and facilitating
development of the I-75 Business Park Project and the I-75 NB @ Sardis Church Project, and
(v) facilitation of transactions involving local or state government incentives (collectively the
“Services”). The assistance for the services will be in the form of monthly payments through
the year ending September 30.
Basis of Accounting
The accompanying financial statements are prepared on the accrual basis of accounting, under
which revenues are recognized when earned and measurable and expenses are recognized
when they are incurred, if measurable.
Proprietary funds employ the economic resources measurement focus. The Authority’s
financial statements include provisions of Governmental Accounting Standards Board
Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis –
For State and Local Governments; and Statement No. 37, Basic Financial Statements – and
Management’s Discussion and Analysis – for State and Local Governments: Omibus; and
Interpretation No. 6, Recognition and Measurement of Certain Liabilities and Expenditures in
Governmental Fund Financial Statements. Proprietary funds distinguish operating revenues
and expenses from non-operating items. Operating revenues and expenses generally result
from providing services and producing and delivering goods in connection with a proprietary
fund’s principal ongoing operations. When both restricted and unrestricted resources are
available for use, it is the Authority’s policy to use restricted resources first, and then
unrestricted resources as they are needed.
Notes to Financial Statements September 30, 2017
Macon Water Authority
20
NOTE 1. NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Management Estimates
The preparation of the financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities, and disclosure of
contingent assets and liabilities at the date of the financial statements, and the reported
amounts of revenues and expenses during the period. Actual results could differ from those
estimates.
Budgets and Budgetary Accounting
The Authority is required to adopt an annual budget for its operations and establishes billing
rates accordingly. The budget is formally adopted through passage of a resolution by the
Authority. The Executive Director/President has the responsibility for administering these
programs in accordance with the policies and the annual budget as adopted by the Authority.
Budgets are prepared on a cash basis. The Authority utilizes a purchase order encumbrance
system. These encumbered appropriations lapse at year end. Neither the budget resolution
nor any bond covenants, however, require that the Authority report budgetary information in its
financial statements.
Revenue Recognition
The Authority recognizes revenue upon it becoming earned and measurable. The Authority
has sole jurisdiction to set rates for water and sewer service to customers. These are not
currently subject to regulation by any Federal, State of Georgia or similar agency. The
Authority sets a rate schedule for both water and sewer customers. Rates are adopted in three
year increments and a five year rate plan is approved annually. All customers of the system
pay minimum monthly charges for water and sewer services. All water and sewer customers
are billed on a monthly basis. All accounts receivable not paid within 20 days after the billing
date are considered to be delinquent.
Notes to Financial Statements September 30, 2017
Macon Water Authority
21
NOTE 1. NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Revenue Recognition (Continued)
The Authority’s policy is to discontinue service to customers whose account receivable is over
30 days delinquent. Bad debts expense resulting from uncollectible accounts was $153,386,
which represents 0.28% of gross operating revenues for the year ended September 30, 2017.
Amounts due and unpaid to the Authority constitute liens on the property of the customer when
past due. Customer accounts receivable include billed but uncollected amounts and unbilled
receivables based upon a pro rata amount of subsequent monthly billings. Reserves for
doubtful accounts, allowances and rebates are maintained based on historical results adjusted
to reflect current conditions.
Deposits and Investments
The Authority’s cash and cash equivalents are considered to be cash on hand, demand
deposits, and short-term investments with original maturities of three months or less from the
date of acquisition.
The policy of the Authority requires that all funds that are idle for any period of time be
invested. These investments are to be made in federal or state government instruments or
repurchase agreements which are insured or collateralized according to state statutes. State
statutes require all deposits and investments (other than federal or state government
instruments) to be collateralized by depository insurance, obligations of the U.S. government,
or bonds of public authorities, counties, or municipalities. The collateral pledged by the banks’
trust departments in the Authority’s name is composed of various obligations of the U.S.
Government.
The local government investment pool, “Georgia Fund 1,” created by O.C.G.A. 36-83-8, is a
stable asset value investment pool, which follows Standard & Poor’s criteria for AAAf rated
money market funds and is regulated by the Georgia Office of the State Treasurer. The pool is
not registered with the SEC as an investment company. The pool’s primary objectives are
safety of capital, liquidity, yield and diversification while maintaining principal ($1 per share
value). Yield is calculated on an actual/365 day basis net of five basis points (administrative
fees). The pool distributes earnings (net of the five basis points administrative fees) on a
monthly basis and determines participant’s shares sold and redeemed based on $1 per share.
Notes to Financial Statements September 30, 2017
Macon Water Authority
22
NOTE 1. NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Deposits and Investments (Continued)
The pool also adjusts the value of its investments to fair market value as of year-end and the
Authority’s investment in the Georgia Fund 1 is reported at fair value. The Authority considers
amounts held in Georgia Fund 1 as cash for financial statement presentation.
The Authority’s policy is to hold investments until maturity or until fair values equal or exceed
amortized cost.
Statutes require that securities underlying repurchase agreements must have a market value of
at least 104% of the cost of the repurchase agreement.
Inventories
Inventories of materials and supplies are stated at cost, based on the first-in, first-out (FIFO)
method.
Bond Premiums
Bond premiums are deferred and amortized over the term of the bonds using the straight-line
method, which is not materially different from the effective interest method. Bond premiums are
presented as an addition of the face amount of bonds payable.
Capital Assets
The water and sewerage system plants and properties are carried at cost. Donated capital
assets, donated works of art and similar items, and capital assets received in service
concession arrangements are reported at acquisition value. These are depreciated over their
estimated useful lives using the straight-line method. The major classes of depreciable capital
assets and their respective useful lives are analyzed as follows:
Administrative office building 40 years
Broadway Street service center 25 years
Water system 10 - 40 years
Sewerage system 10 - 50 years
Equipment and vehicles 3 to 20 years
Notes to Financial Statements September 30, 2017
Macon Water Authority
23
NOTE 1. NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Capital Assets (Continued)
Fully depreciated assets still in service are carried in the capital asset accounts. Maintenance
and repairs of capital assets are charged to operations and major improvements in excess of
$10,000 are capitalized. Upon disposition of property and equipment, the cost and
accumulated depreciation is eliminated from the accounts and gain or loss is recognized.
Capital Contributions
Capital contributions represent funds received from federal, state, and other government grants
for aid in construction and development of plants and facilities which do not require repayment.
In accordance with current financial reporting standards, the Authority is required to include all
capital contributions in the Statement of Revenues, Expenses, and Changes in Net Position.
Compensated Absences
The Authority has accrued a liability for future annual leave, having determined that payment of
such compensation is probable and having developed a reasonable estimate based upon
current salary costs with no benefits. The amount accrued is not considered significant enough
to warrant further disclosure. The cost of vacation paid during the current year is charged to
the liability account when paid. In accordance with the provisions of Statement No. 16 of the
Governmental Accounting Standards Board, Accounting for Compensated Absences, no
liability is recorded for non-vesting accumulating rights to receive sick pay benefits.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element, deferred outflows of
resources, represents a consumption of net position that applies to future period(s) and so will
not be recognized as an outflow of resources (expense) until then. The Authority reported two
items that qualified for reporting in this category for the year ended September 30, 2017.
Those items are deferred bond refunding charges and the items related to the changes in the
net pension liability discussed on the following page.
Notes to Financial Statements September 30, 2017
Macon Water Authority
24
NOTE 1. NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Deferred Outflows/Inflows of Resources (Continued)
The Authority also has deferred inflows and outflows related to the recording of changes in its
net pension liability. Certain changes in the net pension liability are recognized as pension
expense over time instead of all being recognized in the year of occurrence. Experience gains
or losses result from periodic studies by the Authority’s actuary which adjust the net pension
liability for actual experience for certain trend information that was previously assumed, for
example the assumed dates of retirement of plan members. These experience gains or losses
are recorded as deferred outflows of resources or deferred inflows of resources and are
amortized into pension expense over the expected remaining service lives of plan members.
Changes in actuarial assumptions which adjust the net pension liability are also recorded as
deferred outflows of resources or deferred inflows of resources and are amortized into pension
expense over the expected remaining service lives of plan members. The difference between
projected investment return on pension investments and actual return on those investments is
also deferred and amortized against pension expense over a three year period. Additionally,
any contributions made by the Authority to the pension plan before year end but subsequent to
the measurement date of the Authority’s net pension liability are reported as deferred outflows
of resources.
In addition to liabilities, the statement of net position will sometimes report a separate section
for deferred inflows of resources. This separate financial statement element, deferred inflows
of resources, represents an acquisition of net position that applies to future period(s) and so will
not be recognized as an inflow of resources (revenue) until that time. Other than the items
related to the changes in the net pension liability, as discussed on the following page, the
Authority did not have any items that qualified for reporting in this category.
Notes to Financial Statements September 30, 2017
Macon Water Authority
25
NOTE 2. DEPOSITS AND INVESTMENTS
Total deposits and investments as of September 30, 2017, are summarized as follows:
As reported in the Statement of Net Position:
Cash $ 56,593,327 Investments 10,787,662 Restricted:
Cash 22,831,555 Investments 5,420,840
$ 95,633,384
Cash deposited with financial institutions $ 22,102,720 Cash deposited with Georgia Fund 1 57,322,162 Investments in government securities 16,208,502
$ 95,633,384
Credit Risk. State statutes authorize the Authority to invest in obligations of the State of Georgia
or other states; obligations issued by the U.S. government; obligations fully insured or guaranteed
by the U.S. government or by a government agency of the United States; obligations of any
corporation of the U.S. government; prime bankers’ acceptances; the local government
investment pool established by state law; repurchase agreements; and obligations of other
political subdivisions of the State of Georgia. The Authority has no formal credit risk policy other
than to only invest in obligations authorized by the State of Georgia. As of September 30, 2017,
the Authority’s investment in Georgia Fund 1 was rated AAAf by Standard & Poor’s, Federal
Home Loan Bank and Federal Farm Credit Bank was rated Aaa by Moody’s, and the Tennessee
Valley Authority rating was rated Aaa by Moody’s.
At September 30, 2017, the Authority had the following investments:
Investment Maturities
Georgia Fund 1 26 day weighted average $ 57,322,162 Tennessee Valley Authority January 15, 2019 487,940 Federal Farm Credit Bank August 16, 2019 3,479,317 Federal Farm Credit Bank September 13, 2021 2,236,290 Federal Home Loan Bank June 30, 2021 3,600,000 Federal Home Loan Bank June 30, 2021 4,932,900 Federal Home Loan Bank July 13, 2021 1,472,055
Fair Value
Notes to Financial Statements September 30, 2017
Macon Water Authority
26
NOTE 2. DEPOSITS AND INVESTMENTS (CONTINUED)
Interest Rate Risk. The Authority does not have a formal investment policy that limits
investment maturities as a means of managing its exposure to fair value losses arising from
increasing interest rates.
Fair Value Measurements. The Authority categorizes its fair value measurements within the fair
value hierarchy established by generally accepted accounting principles. The hierarchy is based
on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted
prices in active markets for identical assets; Level 2 inputs are significant other observable inputs;
and Level 3 inputs are significant unobservable inputs. Georgia Fund 1 is an investment pool,
which does not meet the criteria of GASB Statement No. 79 and is thus valued at fair value in
accordance with GASB Statement No. 31. As a result, the Authority does not disclose investment
in Georgia Fund 1 within the fair value hierarchy.
Government agencies $ - $ 15,720,562 $ - $ 15,720,562
Municipal bonds - 487,940 - 487,940
Total investments measured
at fair value $ - $ 16,208,502 $ - 16,208,502
Investments not subject to
level disclosure:
Georgia Fund 1 57,322,162
$ 73,530,664
Investment Level 3 Fair ValueLevel 1 Level 2
Custodial Credit Risk – Deposits. Custodial credit risk for deposits is the risk that, in the event
of the failure of a depository financial institution, a government will not be able to recover deposits
or will not be able to recover collateral securities that are in the possession of an outside party.
State statutes require that all deposits and investments (other than federal or state government
instruments) be collateralized by depository insurance, obligations of the U.S. government, or
bonds of public authorities, counties, or municipalities. As of September 30, 2017, the Authority’s
deposits were covered by either federal depository insurance or by collateral held by the
Authority’s agent in the Authority’s name.
Notes to Financial Statements September 30, 2017
Macon Water Authority
27
NOTE 2. DEPOSITS AND INVESTMENTS (CONTINUED)
Custodial Credit Risk – Investments. Custodial credit risk for investments is the risk that, in the
event of the failure of the counterparty, the Authority will not be able to recover the value of its
investments or collateral securities that are in the possession of an outside party. State statutes
require all investments (other than federal or state government instruments) to be collateralized
by depository insurance, obligations of the U.S. government, or bonds of public authorities,
counties, or municipalities. As of September 30, 2017, the Authority was not exposed to custodial
credit risk for its investments.
NOTE 3. COMMITMENTS AND CONTINGENCIES
Construction Contractual Commitments: In addition to the liabilities enumerated in the
Statement of Net Position, at September 30, 2017, the Authority has contractual commitments on
uncompleted engineering and construction contracts of approximately $43,600,000.
Other Contractual Commitments: As noted previously, the Authority has entered into various
agreements to assist other local governmental entities.
The Authority has entered into an agreement with the Macon-Bibb County Industrial Authority and
Macon-Bibb County to provide an annual amount not to exceed $704,000 from the Authority’s
annual operations to an industrial development revolving fund for a 25-year period ending
September 30, 2023. This agreement requires the revolving fund to be utilized to induce industry
to the area by providing and developing appropriate sites and facilities as approved by the
Authority over a 50-year period. Amounts deposited by the Authority are to be used solely for the
payment of costs for obtaining, developing and maintaining industrial sites and facilities, including
any infrastructure desirable and optional money for proposed sites.
The Authority has entered into an agreement with Macon-Bibb County to provide an annual
amount not to exceed $304,990 from the Authority’s annual operations to provide assistance to
Macon-Bibb County relative to the Macon-Bibb County landfill (or landfills) closure and
post-closure costs as well as continued construction and maintenance of the flood control levies
near the Ocmulgee River and its tributaries. The term of the agreement is for a 25-year period
ending September 30, 2035. This agreement requires funds to be utilized to address the landfill
and levee system as approved by the Authority. Amounts deposited by the Authority are to be
used solely for payment of such costs.
Notes to Financial Statements September 30, 2017
Macon Water Authority
28
NOTE 3. COMMITMENTS AND CONTINGENCIES (CONTINUED)
The Authority has entered into an agreement with the Macon-Bibb County Industrial Authority to
provide monthly payments ranging from $18,750 to $25,000 from the Authority’s annual
operations for a 5-year period ending March 31, 2022. These payments are to be utilized to
provide the services previously noted.
NOTE 4. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2017, is as follows:
Beginning Ending
Balance Balance
Capital assets, not
being depreciated:
Land $ 8,706,242 $ - $ (1,626,347) $ - $ 7,079,895
Construction in progress 7,547,632 14,299,444 - (12,077,257) 9,769,819
Total 16,253,874 14,299,444 (1,626,347) (12,077,257) 16,849,714
Capital assets, being
depreciated:
Lucas Lake reservoir 10,247,739 - - - 10,247,739
Administrative office building 4,340,805 - - - 4,340,805
Service center 5,186,635 - - 323,431 5,510,066
Water system 243,423,461 - - 2,750,384 246,173,845
Sewerage system 244,904,003 7,515 - 7,856,366 252,767,884
Equipment and vehicles 23,893,821 536,495 (859,971) 1,147,076 24,717,421
Total 531,996,464 544,010 (859,971) 12,077,257 543,757,760
Less accumulated
depreciation for:
Lucas Lake reservoir (4,154,387) (259,161) - - (4,413,548)
Administrative office building (2,137,753) (166,512) - - (2,304,265)
Service center (3,933,576) (182,641) - - (4,116,217)
Water system (127,464,479) (6,206,505) - - (133,670,984)
Sewerage system (174,901,372) (6,777,680) - - (181,679,052)
Equipment and vehicles (18,889,325) (1,005,945) 817,535 - (19,077,735)
Total (331,480,892) (14,598,444) 817,535 - (345,261,801)
Total capital assets, being
depreciated, net 200,515,572 (14,054,434) (42,436) 12,077,257 198,495,959
Total capital assets, net $ 216,769,446 $ 245,010 $ (1,668,783) $ - $ 215,345,673
Increases Decreases Transfers
Notes to Financial Statements September 30, 2017
Macon Water Authority
29
NOTE 5. LONG-TERM DEBT
The following is a summary of long-term debt activity for the year ended September 30, 2017:
Beginning Ending Due WithinBalance Balance One Year
Revenue bonds $ 88,740,000 $ 9,475,000 $ (18,675,000) $ 79,540,000 $ 5,230,000 Plus unamortized
premiums 2,894,315 522,158 (453,469) 2,963,004 - Revenue bonds, net 91,634,315 9,997,158 (19,128,469) 82,503,004 5,230,000 Capital lease payable 273,686 - (80,426) 193,260 68,421 Notes payable 2,993,578 4,154,109 (364,638) 6,783,049 618,483 Net OPEB obligation 1,393,736 969,366 (132,517) 2,230,585 - Net pension liability 12,324,795 3,267,007 (5,130,291) 10,461,511 - Total long-term debt $ 108,620,110 $ 18,387,640 $ (24,836,341) $ 102,171,409 $ 5,916,904
Additions Reductions
Revenue Bonds Payable
The Authority issues bonds which pledge revenues derived from the operation of capital assets to
pay debt service.
Revenue bonds outstanding at September 30, 2017, are as follows:
Fiscal Year
Series Interest Rate Due Date
2008 Series 4.00% - 5.00% 2019 $ 24,270,000 $ 5,360,000 2010B Series 2.00% - 4.00% 2031 20,000,000 16,745,000 2011A Series 3.25% - 4.25% 2032 12,000,000 12,000,000 2011B Series 3.25% - 4.25% 2022 21,900,000 17,090,000 2012 Series Var. Avg. - 0.81% 2033 10,000,000 10,000,000 2015 Series 4.00% 2036 8,870,000 8,870,000 2016 Series 2.00% - 4.00% 2027 9,475,000 9,475,000
79,540,000 Plus unamortized premiums 2,963,004
$ 82,503,004
Amount
Outstanding
Amount
Original
Notes to Financial Statements September 30, 2017
Macon Water Authority
30
NOTE 5. LONG-TERM DEBT (CONTINUED)
Revenue Bonds Payable (Continued)
Revenue bond debt service requirements to maturity are as follows:
Year Ending
September 30,2018 $ 5,230,000 $ 2,924,023 $ 8,154,023 2019 5,465,000 2,840,180 8,305,180 2020 5,710,000 2,594,180 8,304,180 2021 5,925,000 2,387,787 8,312,787 2022 6,145,000 2,164,523 8,309,523
2023-2027 19,095,000 8,252,071 27,347,071 2028-2032 21,350,000 4,314,036 25,664,036 2033-2036 10,620,000 709,536 11,329,536
$ 79,540,000 $ 26,186,336 $ 105,726,336
Revenue Bonds
InterestPrincipal Debt Service
Aggregate
An analysis of interest costs associated with the revenue bonds of the Authority as of
September 30, 2017, is as follows: Under the terms of all revenue bond agreements, the Authority must satisfy certain covenants. It
is the opinion of management that the Authority has complied with all other requirements and
restrictions of these agreements for the year ended September 30, 2017.
Interest on revenue bonds $ 2,811,614 Add:
Amortization of bond premium (453,469) Amortization of charges on refunding 139,653 Cost of issuance 171,281 Other fiduciary charges 56,232
Total interest expense and related chargesrecognized on revenue bonds $ 2,725,311
Notes to Financial Statements September 30, 2017
Macon Water Authority
31
NOTE 5. LONG-TERM DEBT (CONTINUED)
Other Long-term Debt
Capital Lease Payable
The Authority has entered into a lease agreement as lessee for financing the upgrading of their
network security and infrastructure. The lease agreement qualifies as a capital lease for
accounting purposes and, therefore, has been recorded as the present value of the future
minimum lease payments as of the date of inception. The concept of interest has been
determined to be insignificant and immaterial.
The cost of assets under capital lease as of September 30, 2017:
Equipment $ 321,485 Less: Accumulated depreciation (83,303)
$ 238,182
Current year depreciation of assets under capital lease totaled $64,297 and is included in depreciation expense.
The Authority’s total capital lease debt service requirements to maturity are as follows:
Fiscal year ending September 30:
2018 $ 68,421 2019 68,421 2020 56,418
$ 193,260
Principal
Notes to Financial Statements September 30, 2017
Macon Water Authority
32
NOTE 5. LONG-TERM DEBT (CONTINUED)
Other Long-term Debt (Continued)
Georgia Environmental Facilities Authority (GEFA)
GEFA Note: The Authority has incurred debt to GEFA for construction of various water and
sewer system projects utilizing certain capitalization grant funds made available to GEFA from the
United States Environmental Protection Agency (EPA). These notes are as follows at
September 30, 2017.
Interest Fiscal Year
Loan Rate Term Due Date
GEFA 94-016 3.75% 20 Years 2021 $ 5,698,467 $ 1,283,049 GEFA 13-010 1.40% 20 Years 2037 5,500,000 5,500,000
$ 11,198,467 $ 6,783,049
AmountOutstanding
AmountOriginal
The Authority’s total debt service requirement for the GEFA notes to maturity, including interest of
$890,764, is as follows: Fiscal year ending September 30:
2018 $ 618,483 $ 117,097 2019 636,304 99,276 2020 654,706 80,874 2021 353,995 65,819 2022 253,804 61,649
2023-2027 1,323,682 253,586 2028-2032 1,419,602 157,666 2033-2037 1,522,473 54,797
$ 6,783,049 $ 890,764
Principal Interest
Notes to Financial Statements September 30, 2017
Macon Water Authority
33
NOTE 6. PENSION PLAN
Plan Description. The Authority maintains and administers a single employer, defined benefit
pension plan (the “Plan”) covering substantially all of its employees hired before July 1, 2012. The
Plan was closed to employees hired after July 1, 2012. The Plan provides retirement, death and
disability benefits to its members and beneficiaries. The Authority is solely responsible for
establishing or initiating Plan provisions through the Macon Water Authority Pension Committee.
This seven-member Committee consist of (1) the chairman of each of the three standing
committees – finance, engineering, and personnel, (2) three members elected by employees, and
(3) the Chairman of the Macon Water Authority Board. The Plan does not issue stand-alone
financial statements.
Plan Membership. As of October 1, 2016, pension plan membership consisted of the following:
Inactive plan members or beneficiaries currently receiving benefits 88 Inactive plan members entitled to but not receiving benefits 21 Active plan members 142
251
Benefits Provided. Authority funded benefits vest after five (5) years of service. Reduced benefits
may be obtained at earlier retirement. Benefits are also available if participants become
permanently disabled.
A vested employee may elect to retire under one of the following options with no reduction in
benefits: a) normal retirement (age 63 with five to 30 years of service); or b) early retirement (age
55 with 30 years of service).
This benefit is equal to the Final Average Monthly Earnings (an average of the last three years’
earnings), multiplied by a benefit factor of 2.00% times years of service. The benefit factor
increases from 2.00% for 30 years of service by 0.025% for each additional year of service, not to
exceed 2.25% at 40 or more years of service.
The plan provides for Disability Retirement for any member who, after five years of service,
becomes permanently and totally disabled. These benefits would equal his Final Average
Monthly Earnings, multiplied by a factor of 1.75%, times his years of service.
Notes to Financial Statements September 30, 2017
Macon Water Authority
34
NOTE 6. PENSION PLAN (CONTINUED)
Contributions. The Authority and participants are required to make contributions to the Plan. The
Authority funding policy is to contribute at least the employee contributions less refunds and not
less than the Official Code of Georgia Annotated (O.C.G.A.) 47-20-10 minimum funding
standards. For the year ended September 30, 2017, the active member required contribution rate
was 6.2% and the Authority’s contribution rate was 6.2% of annual payroll. Authority
contributions to the Plan were $3,136,722 for the year ended September 30, 2017. The Authority
receives a refund of contributions equal to employee contribution refunds upon a non-vested
employee’s termination.
The Authority’s net pension liability was measured as of September 30, 2016. The total pension
liability used to calculate the net pension liability was determined by an actuarial valuation as of
October 1, 2015.
The Authority’s net pension liability for the year ended September 30, 2017, is as follows:
Total pension liability $ 39,279,586
Plan net position 28,818,075
Net pension liability $ 10,461,511
Plan net position as a percentage
of the total pension liability 73%
Notes to Financial Statements September 30, 2017
Macon Water Authority
35
NOTE 6. PENSION PLAN (CONTINUED)
The Authority’s changes in the net pension liability by source and the derivation of the Authority’s
pension expense for the fiscal year ended September 30, 2017, are reflected below:
Plan Fiduciary Net Pension
Net Position Liability (Asset)
(b) (a) - (b)
Beginning Balance $ 38,179,667 $ 25,854,872 $ 12,324,795
Changes for the year:
Service cost 626,428 - 626,428 $ 626,428 Interest 2,640,579 - 2,640,579 2,640,579 Amortization of experience differences - - - 274,234 Amortization of assumption changes - - - 532,030 Contributions—employer - 2,111,565 (2,111,565) - Contributions—employee - 468,936 (468,936) (468,936) Net investment income - 2,485,537 (2,485,537) (1,824,310) Amortization of investment earnings
differences - - - 403,818 Benefit payments, including refunds of
employee contributions (2,167,088) (2,167,088) - - Administrative expense - 64,253 (64,253) -
Net changes 1,099,919 2,963,203 (1,863,284) $ 2,183,843
Ending Balance $ 39,279,586 $ 28,818,075 $ 10,461,511
Total Pension
Liability Pension(a) Expense
The required schedule of changes in the Authority’s net pension liability and related ratios
immediately following the notes to the financial statements presents multi-year trend information
about whether the value of plan assets are increasing or decreasing over time relative to the total
pension liability.
Notes to Financial Statements September 30, 2017
Macon Water Authority
36
NOTE 6. PENSION PLAN (CONTINUED)
Deferred Outflows and Inflows of Resources. The Authority reported deferred outflows and
inflows of resources related to pensions from the following sources as of September 30, 2017:
Pension experience differences $ 1,106,178 $ 6,931
Pension assumption changes 2,128,122 -
Pension investment return 791,005 580,384
Pension contributions subsequent to
measurement date 3,136,722 -
Total $ 7,162,027 $ 587,315
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Authority contributions subsequent to the measurement date of $3,136,722 are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ending September 30, 2017. Other amounts reported as deferred inflows and deferred outflows of resources related to pensions will be recognized in pension expense as follows:
Year ending September 30:
2018 $ 1,452,172
2019 661,168
2020 661,167
2021 663,483
Total $ 3,437,990
Actuarial Assumptions. The following actuarial assumptions apply to all periods included in the measurement:
Inflation 2.50%
Salary increases 3.50% - 6.00%
Investment return 7.00%
Notes to Financial Statements September 30, 2017
Macon Water Authority
37
NOTE 6. PENSION PLAN (CONTINUED)
Mortality rates were based on the RP-2000 Combined Mortality Table projected to 2025 using
Projection Scale AA, with a two year set forward for males and no adjustment for females. No
specific experience study has been performed on which to base the actuarial assumptions. Cost
of living adjustments were assumed to be 2.00%.
The long-term expected rate of return on Plan investments was determined using a building-block
method in which best-estimate ranges of expected future real rates of return (expected returns,
net of pension plan investment expense and inflation) are developed for each major asset class.
These ranges are combined to produce the long-term expected rate of return by weighting the
expected future real rates of return by the target asset allocation percentage and by adding
expected inflation. Best estimates of arithmetic real rates of return for each major asset class
included in the Plan’s target asset allocation as of September 30, 2016: Equity Securities – 7.0%
and Fixed Income Securities – 7.0%.
Discount Rate. The discount rate used to measure the total pension liability was 7.00%. The
projection of cash flows used to determine the discount rate assumed that plan member
contributions will be made at the current contribution rate and that Authority contributions will be
made at rates equal to the difference between actuarially determined contribution rates and the
member rate. Based on those assumptions and also on considering the Plan’s net position as of
September 30, 2017, the Plan’s net position was projected to be available to make projected
future benefit payments of current plan members for all future Plan years. Therefore, the
long-term expected rate of return on pension plan investments (7.00%) becomes the discount
rate and thus was applied to all projected future benefit payments to determine the total pension
liability. Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The following presents
the net pension liability of the Authority, calculated using the discount rate of 7.00%, as well as
what the Authority’s net pension liability would be if it were calculated using a discount rate that is
one percentage point lower (6.00%), or one percentage point higher (8.00%) than the current
rate.
Notes to Financial Statements September 30, 2017
Macon Water Authority
38
NOTE 6. PENSION PLAN (CONTINUED)
The following table represents the sensitivity analysis discussed above as of September 30, 2017:
Authority's net pension liability $ 14,766,910 $ 10,461,511 $ 6,581,406
1.00% Increase
6.00% 7.00% 8.00%
Current
1.00% Decrease Discount Rate
Actuarial valuations involve estimates of the value of reported amounts and assumptions about
the probability of events far into the future. Actuarially determined amounts are subject to
continual revision as results are compared to past expectations and new estimates are made
about the future. Actuarial calculations reflect a long-term perspective. Calculations are based
on the substantive plan in effect as of September 30, 2017, and the current sharing pattern of
costs between employer and employee.
Defined Contribution Plan
The Authority maintains and administers a defined contribution pension plan, the Macon Water
Authority Retirement Savings Plan (the “Savings Plan”), which was established on July 1, 2012.
All employees hired on or after July 1, 2012 are required to participate in the Savings Plan. At
September 30, 2017, there were 92 active participates. Both the Authority and the Savings Plan
participants are required to contribute 6.2% of the participant’s compensation. The Authority is
solely responsible for establishing or amending Savings Plan provisions. For the year ended
September 30, 2017, the Authority and the employees each contributed $204,390.
NOTE 7. RISK MANAGEMENT (INSURANCE, WORKERS COMPENSATION, AND HEALTH
INSURANCE)
The Authority is exposed to various risks of loss related to torts; theft of assets; damage to and
destruction of assets; errors and omissions; and natural disasters for which the Authority carries
commercial property and casualty insurance.
Notes to Financial Statements September 30, 2017
Macon Water Authority
39
NOTE 7. RISK MANAGEMENT (INSURANCE, WORKERS COMPENSATION, AND HEALTH
INSURANCE) (CONTINUED)
The Authority is self-insured for workers' compensation claims coverage up to $500,000. The
Authority buys reinsurance provided through private insurance policies for individual claims that
exceed $500,000. The coverage pays per Georgia State Workers’ Compensation law. During
fiscal year 2016 the Authority added a cash flow protection endorsement that limits the payout on
any one claim to $200,000 during the immediate 12 month period following the date of loss. The
Authority is a member of the subsequent injury trust fund (SITF) of the state of Georgia which
reduces exposure based on reinjured employees, for injuries prior to 2008.
The Authority is self-insured for its employee health benefit (major medical and dental) claims up
to a fiscal year aggregate basis per individual of $60,000 for major medical, and $1,000 for
dental. Excess major medical insurance coverage is provided through private insurance policies
for the amounts in excess of $60,000 per covered individual.
The basis for estimating the liabilities for unpaid claims is an incurred, but not reported,
calculation. The Authority has provided for amounts which are considered to be outstanding and
unpaid as of September 30, 2017, and such amounts are included in the financial statements for
the year ended September 30, 2017.
There have been no significant reductions of insurance coverage and settlement amounts have
not exceeded insurance coverage for the current or the three prior years.
All unpaid claims are expected to be paid within one year. Required disclosures representing the
changes in the balances of claims liabilities during the year ended September 30, 2017, are as
follows:
Unpaid claims, beginning of fiscal year $ 318,128 Claims paid 1,351,513 Incurred claims 1,606,365
Unpaid claims, end of fiscal year $ 572,980
Notes to Financial Statements September 30, 2017
Macon Water Authority
40
NOTE 8. OTHER POST-EMPLOYMENT BENEFITS
Plan Description
The Macon Water Authority Retiree Medical Plan (the “OPEB Plan”) is a single-employer defined
benefit post-retirement health care plan, or other post-employment benefit (OPEB) plan. The
Macon Water Authority adopted Statement No. 45 of the Governmental Accounting Standards
Board (GASB No. 45) for determining accrual costs and liabilities for this OPEB program effective
October 1, 2008.
GASB No. 45 calls for a determination of an Annual OPEB Cost and disclosure of certain items
showing the Plan’s funded status, deferred items, and the Net OPEB Obligation. The Annual
Required Contribution (ARC) shown is the normal cost plus or minus the 30-year amortization of
the unfunded actuarial liability. The resulting funding level satisfies GASB No. 45 requirements
for ARC. Benefit provisions and contribution requirements are established and may be amended
by the Authority.
The OPEB Plan does not issue stand-alone financial statements and is not included in any other
financial report of any other entity.
General
The following brief description of the OPEB Plan terms is provided for general information
purposes only.
Retirement Options/Benefit Provisions
The Authority offers medical coverage to eligible retirees. The benefits are the same as those
offered to active employees. For retirees who are not Medicare eligible, the medical benefits are
provided through a Preferred Provider Organization. The Authority pays a portion of the retiree
premiums for medical coverage. Once retirees become Medicare eligible, the medical benefits
are provided as a supplemental plan. The Authority pays the entire premium for some retirees,
others pay half the current COBRA rate, and a third class pays COBRA. This is dependent on
when the employee retired. The retiree is responsible for purchasing Medicare Part A & B
coverage once eligible. The Authority pays dental and vision coverage for eligible retirees. Eligible participants for Other Post-Employment Benefits include retirees who retire from active service after age 55 and completion of 15 years of service.
Notes to Financial Statements September 30, 2017
Macon Water Authority
41
NOTE 8. OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
Fund Membership The following schedule (derived from the most recent actuarial valuation report) reflects membership for the OPEB Plan as of October 1, 2015.
Active participants 213 Retirees 45 Total 258
Contributions
The annual required contribution is determined using actuarial methods and assumptions
approved by the Retirement Plans Management Committee. It is intended to satisfy the minimum
contribution requirements as set forth in GASB Statement 45.
Trend Information: Information from each of the three most recent years for the OPEB Plan is
as follows:
Contributions Required and Contributions Made
Percentage OPEBFiscal Year of OPEB ARC
Ending Contributed
September 30, 2015 $ 797,000 22% $ 722,253 September 30, 2016 810,000 16% 1,393,736 September 30, 2017 1,003,000 15% 2,230,585
OPEBAnnual Required Net Pension
Contribution (ARC) Obligation (Asset)
Other Actuarial and Amortization Disclosures
The OPEB Plan uses the entry age normal actuarial cost method to determine the Annual
Required Contribution (ARC). For the most recent actuarial valuation, the OPEB Plan uses the
level dollar amortization method over a thirty (30) year period and the period is considered to be
open ended.
Notes to Financial Statements September 30, 2017
Macon Water Authority
42
NOTE 8. OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
Other Actuarial and Amortization Disclosures (Continued)
The Authority’s annual OPEB cost and net OPEB obligation for the current year were as follows:
Annual Required Contribution (ARC) $ 1,003,000 Interest on net OPEB obligation 43,000 Adjustment of net OPEB obligation (61,000) Annual OPEB cost 985,000 Actual contributions to the plan (148,151) Change in net OPEB obligation 836,849 Net OPEB obligation as of October 1, 2016 1,393,736 Net OPEB obligation as of September 30, 2017 $ 2,230,585
As of the most recent valuation date, October 1, 2015, the funded status of the OPEB Plan was
as follows:
Actuarial Actuarial Unfunded Actuarial UAAL as a Value of Accrued Accrued Liability Funded Covered Percentage of Assets Liability (AAL) (UAAL) Ratio Payroll Covered Payroll
-$ 11,459,000$ 11,459,000$ 0.0% 9,096,000$ 126.0%
The schedule of funding progress for the post-employment defined benefit plan immediately
following the notes to the financial statements presents multi-year trend information about
whether the actuarial value of plan assets is increasing or decreasing relative to the actuarial
accrued liability for benefits over time.
Actuarial valuations involve estimates of the value of reported amounts and assumptions about
the probability of events far into the future, and actuarially determined amounts are subject to
continual revision as results are compared to past expectations and new estimates are made
about the future. Actuarial calculations reflect a long-term perspective. Calculations are based
on the substantive plan in effect as of October 1, 2015.
Notes to Financial Statements September 30, 2017
Macon Water Authority
43
NOTE 8. OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
Other Actuarial and Amortization Disclosures (Continued)
The assumptions used in the October 1, 2015 actuarial valuation is as follows:
Actuarial Assumptions:
Mortality RP-2000 Combined Mortality TableDiscount rate for benefit obligations 4.00%Inflation rate assumption 4.00%Healthcare cost trend rates:
Medical 8.10% graded linearly per year to an ultimate rate of 5.25%Administrative 4.00%
Retirement rates by age:Service
under 15Service from
15-29Service for 30 or more
55 0% 5% 40%56-58 0% 5% 30%
59 0% 5% 20%60-61 0% 10% 10%
62 0% 20% 25%63 30% 50% 30%64 40% 40% 40%65 40% 40% 40%
66 & over 100% 100% 100%
Plan participation
Annual per capita retireecontributions:
Medical (POS Plan)Pre-65 $584Post Medicare $292
Retiree contribution increases
40% of active participants are assumed to continue their coverage into retirement and 80% of actives who become disabled are assumed to continue their coverage
Retiree contributions are assumed to increase each year by the assumed Medical Trend Rate
REQUIRED SUPPLEMENTARY INFORMATION
44
Required Supplementary Information Schedule of Changes in the Authority’s Net Pension Liability and Related Ratios
September 30, 2017
Macon Water Authority
Total pension liability
Service cost $ 626,428 $ 541,846 $ 541,846
Interest on total pension liability 2,640,579 2,243,899 2,205,797
Differences between expected and actual experience - 1,659,266 (13,861)
Changes of assumptions - 3,192,182 -
Benefit payments, including refunds of member
contributions (2,167,088) (1,877,026) (2,172,189)
Net change in total pension liability 1,099,919 5,760,167 561,593
Total pension liability - beginning 38,179,667 32,419,500 31,857,907
Total pension liability - ending (a) $ 39,279,586 $ 38,179,667 $ 32,419,500
Plan fiduciary net position
Contributions - employer $ 2,111,565 $ 1,633,319 $ 2,810,324
Contributions - employee 468,936 - -
Differences between expected and actual experience - (2,373,010) -
Net investment income 2,485,537 1,840,679 2,365,420
Benefit payments, including refunds of member
contributions (2,167,088) (1,877,026) (2,172,189)
Other 64,253 - -
Net change in plan fiduciary net position 2,963,203 (776,038) 3,003,555
Plan fiduciary net position - beginning 25,854,872 26,630,910 23,627,355
Plan fiduciary net position - ending (b) $ 28,818,075 $ 25,854,872 $ 26,630,910
Authority's net pension liability - ending (a) - (b) $ 10,461,511 $ 12,324,795 $ 5,788,590
Plan fiduciary net position as a percentage of the
total pension liability 73.4% 67.7% 82.1%
Covered-employee payroll $ 7,563,480 $ 7,971,507 $ 7,880,280
Net pension liability as a percentage of
covered-employee payroll 138.3% 154.6% 73.5%
Notes to the Schedule:
The schedule will present 10 years of information once it is accumulated.
2016 20152017
45
Required Supplementary Information Schedule of Authority Contributions
September 30, 2017
Macon Water Authority
Actuarially determined contribution $ 1,655,046 $ 1,655,046 $ 1,140,305
Contributions in relation to the actuarially
determined contribution 3,136,722 2,458,733 1,521,034
Contribution deficiency (excess) $ (1,481,676) $ (803,687) $ (380,729)
Covered-employee payroll $ 7,035,651 $ 7,563,480 $ 7,971,507
Contributions as a percentage of
covered-employee payroll 44.58% 32.51% 19.08%
Notes to the Schedule:
(1) Actuarial Assumptions
Valuation Date October 1, 2015
Cost Method Entry Age
Actuarial Asset Valuation Method
Assumed Rate of Return on Investments
Projected Salary Increases 3.50%-6.00%
Cost of Living Adjustments 2.00% every 5 years
Amortization Method
Remaining Amortization Period
(2) The schedule will present 10 years of information once it is accumulated.
20 years open
Level dollar
2017
7.00%
2016 2015
Difference in actual and expected return on assets is recognized over 3 years.
46
Required Supplementary Information Schedule of Pension Investment Returns
September 30, 2017
Macon Water Authority
2017 2016 2015
Annual money-weighted rate of return, net of investment
expenses for the Authority's Pension Plan 9.36% -2.01% 9.88%
Notes to the Schedule:
The schedule will present 10 years of information once it is accumulated.
47
Required Supplementary Information Schedule of Funding Progress
September 30, 2017
Macon Water Authority
Schedule of Funding Progress
OPEB Plan
Most Recent Liability as a
Actuarial PercentageValuation Funded of Covered
Dates Ratio Payroll
October 1, 2011 $ - $ 10,125,000 $ (10,125,000) 0.00% $ 7,658,000 132%October 1, 2013 - 9,481,000 (9,481,000) 0.00% 8,497,000 112%October 1, 2015 - 11,459,000 (11,459,000) 0.00% 9,096,000 126%
Actuarial Actuarial UnfundedValue of Covered
Plan Assets Entry Age Liability PayrollLiability: Actuarial
The assumptions used in the preparation of the above schedule are discussed in Note 8 in the Notes to the
Financial Statements.
Comprehensive Annual Financial Report
STATISTICAL SECTION
Macon Water Authority – Macon Georgia
48
Statistical Section (Unaudited) Comments
Macon Water Authority
Statistical schedules differ from financial statements because they usually cover more than one fiscal year and
may present non-accounting data. These schedules reflect social and economic data and financial trends of the
Authority taken directly from its records unless otherwise indicated.
STATISTICAL SECTION This part of the Macon Water Authority’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, required supplementary information, and supplementary information says about the Authority's overall financial health. Contents Page
Financial Trends ....................................................................................................................................... 49 - 51 These schedules contain trend information to help the reader understand how the Authority's financial performance and well-being have changed over time.
Revenue Capacity ..................................................................................................................................... 52 - 64 These schedules contain information to help the reader assess the Authority's most significant local revenue sources.
Debt Capacity ....................................................................................................................................... 65 and 66 These schedules present information to help the reader assess the affordability of the Authority's current levels of outstanding debt and the Authority's ability to issue additional debt in the future.
Demographic and Economic Information .............................................................................................. 67 - 70 These schedules offer demographic and economic indicators to help the reader understand the environment within which the Authority's financial activities take place.
Operating Information ......................................................................................................................... 71 and 72 These schedules contain service and infrastructure data to help the reader understand how the information in the Authority’s financial report relates to the services the Authority provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the Authority's financial reports for the relevant year.
49
Net Position by Component
Last Ten Fiscal Years
Macon Water Authority
2009 2010 2011 2012
Primary government Net Investment in capital assets $ 168,985,468 $ 163,223,757 $ 166,541,487 $ 149,124,345 $ 154,631,542 Restricted for:a
Capital projects 233 - 18,268,654 12,306,406 2,043,796 Debt serviceb 10,300,542 28,901,201 26,293,354 31,770,115 35,823,645 Unrestricted 53,389,689 36,928,124 15,419,855 36,031,469 35,560,255 Total primary government net position $ 232,675,932 $ 229,053,082 $ 226,523,350 $ 229,232,335 $ 228,059,238
Notes: a In 2010, the Authority issued new debt for capital projects and restricted assets increased. b Restricted assets increased in 2009 when the Authority issued variable rate debt for which it is obligated to maintain
c In 2013, the Authority implemented GASB 63 and 65 which required a restatement of opening equity.
2008
restricted reserves as a condition of acting as its own liquidity provider.
Fiscal Year
50
2013 2014 2015 2017
$ 141,943,411 $ 143,332,031 $ 138,544,515 $ 126,912,867 $ 131,336,350
6,806,028 2,772,203 496,609 9,541,071 9,347,862 42,438,130 34,973,930 36,687,569 34,071,995 12,132,439 29,294,219 40,288,811 35,941,119 42,641,785 64,254,452
$ 220,481,788 c $ 221,366,975 $ 211,669,812 $ 213,167,718 $ 217,071,103
2016
Fiscal Year
51
Changes in Net Position
Macon Water Authority
Total
Nonoperating Income/(Loss) Change
Fiscal Operating Operating Operating Revenues/ before Capital Capital in Net
Year Revenues Expenses Income (Expenses) Contributions Contributionsa Position
2008 42,625,993$ 40,475,947$ 2,150,046$ (2,547,123)$ (397,077)$ 1,929,548$ 1,532,471$ 2009 40,730,088 40,984,842 (254,754) (4,178,684) (4,433,438) 810,588 (3,622,850) 2010 41,588,125 42,157,197 (569,072) (4,149,778) (4,718,850) 2,189,118 (2,529,732) 2011 46,663,328 43,063,222 3,600,106 (4,165,398) (565,292) 3,274,277 2,708,985 2012 45,540,148 43,151,644 2,388,504 (4,117,966) (1,729,462) 556,365 (1,173,097) 2013 42,516,386 45,037,190 (2,520,804) (3,923,211) (6,444,015) 57,959 (6,386,056) 2014 47,448,075 43,657,251 3,790,824 (3,228,859) 561,965 323,222 885,187 2015 50,029,863 46,236,477 3,793,386 (4,426,172) (632,786) 999,877 367,091 2016 52,123,494 47,494,153 4,629,341 (3,310,495) 1,318,846 179,060 1,497,906 2017 54,190,163 49,634,872 4,555,291 (770,732) 3,784,559 118,826 3,903,385
Note:
contributions from Federal and State of Georgia agencies.
Sewer billing is based on consumption rather than fixed rate. FY 2010 and 2011 reflected significant amounts received as capital contributions relative to infrastructure improvement projects
funded by the Federal government. FY 2017 nonoperating revenues/(expenses) decreased due to the gain on the sale of the Crawford County land.
FY 2011 operating revenue included increased grant revenue and increased sewer revenue due to change in billing calculation.
Last Ten Fiscal Years
a Capital contributions are composed of Contributions of Water and Sewer Infrastructure as well as Cash
FY 2008, 2009, 2010, 2011, and 2012 developer contributions were down due to development slowing down because of the economy.
52
Operating Revenues by Source
Macon Water Authority
Fiscal Water Sewer Other Operating
Year Revenuea Revenueb Revenue Total
2008 21,790,228$ 15,946,704$ 4,889,061$ 42,625,993$ 2009 21,186,465 15,946,699 3,596,924 40,730,088 2010 21,063,092 16,874,897 3,650,136 41,588,125 2011 23,513,427 19,327,808 3,822,093 46,663,328 2012 22,694,775 19,050,670 3,794,703 45,540,148 2013 20,112,272 18,767,019 3,791,703 42,670,994 2014 22,894,709 21,017,285 3,536,081 47,448,075 2015 24,633,065 22,407,165 2,989,633 50,029,863 2016 25,685,274 23,134,227 3,303,993 52,123,494 2017 26,514,959 24,085,807 3,589,397 54,190,163
Notes: a FY 2011 was a year of extreme drought. FY 2009 was the wettest year in more than 40 years. FY 2013 was the wettest year in nearly a century with reduced seasonal demand by customers. b FY 2011 billing methodology for sewer revenue was changed from lowest eight (8) month rolling average to 80% of water consumed. FY 2013 revenues dropped due to the year being the wettest in nearly a century.
Last Ten Fiscal Years
53
Operating Expenses by Source
Macon Water Authority
Customer
Fiscal Water Water Water Sewer Care and Field General and
Year Plant Distribution Reclamation Maintenancea Conveyance Engineering Operations Administrative
2008 4,159,736$ 4,509,707$ 5,137,332$ -$ 3,379,474$ 1,280,061$ 2,844,960$ 3,521,557$ 2009 3,536,798 4,326,191 4,679,208 1,660,810 3,040,366 1,402,505 2,860,374 3,573,933 2010 3,480,391 3,959,645 5,132,360 1,721,219 3,146,816 1,317,265 2,995,524 4,266,108 b
2011 3,573,867 4,030,587 5,456,179 1,853,468 3,136,150 1,195,743 3,586,534 3,974,038 b
2012 3,944,883 4,294,680 5,065,757 1,636,648 3,111,397 1,292,920 3,574,556 4,288,015 b
2013 3,810,216 4,574,849 5,235,356 2,035,569 3,803,973 1,339,539 3,904,189 4,728,096 c
2014 3,525,664 5,007,570 5,404,235 1,712,103 3,467,659 1,437,884 3,934,182 4,226,617 d
2015 3,440,356 5,587,878 5,599,462 1,835,110 3,786,759 1,580,619 4,159,946 5,220,256 e
2016 3,438,531 5,749,573 5,652,059 1,915,170 3,883,826 1,622,576 4,617,805 6,059,065 f
2017 3,696,241 6,010,513 5,963,550 2,596,498 4,659,047 1,734,852 5,684,180 4,691,547 g
Note:
b Includes additional annual pension plan funding of $300,000. c Includes additional annual pension plan funding of $600,000. d Includes additional annual pension plan funding of $1,520,000. e Includes additional annual pension plan funding of $950,000. f Includes additional annual pension plan funding of $1,520,000. g Includes additional annual pension plan funding of $2,270,000.
a In 2009, a new department titled Maintenance was established. Responsibility for Maintenance was transferred, along with themechanics performing maintenance, to this new department.
Last Ten Fiscal Years
54
Subtotal,
Expenses Total
before Operating
Depreciation Depreciation Expenses
24,832,827$ 15,643,120$ 40,475,947$ 25,080,185 15,904,657 40,984,842 26,019,328 16,137,869 42,157,197 26,806,566 16,256,656 43,063,222 27,208,856 15,942,788 43,151,644 29,431,787 15,605,403 45,037,190 28,715,914 14,941,337 43,657,251 31,210,386 15,026,091 46,236,477 32,938,605 14,555,548 47,494,153 35,036,428 14,598,444 49,634,872
55
Non-operating Revenues and Expenses
Macon Water Authority
Gain (Loss) Macon-Bibb
Interest and on Disposal Loss on County City of Total
Fiscal Fiscal Interest of Capital Abandoned Industrial Macon Non-operating
Year Chargesa Revenue Assets Projects Assistance Assistance Expenses
2008 (3,934,513)$ 2,387,510$ -$ (2,795)$ (997,325)$ -$ (2,547,123)$ 2009 (3,910,348) 746,472 - - (704,000) (310,808) (4,178,684) 2010 (3,673,600) 622,996 (90,184) - (704,000) (304,990) (4,149,778) 2011 (3,614,408) 458,000 - - (704,000) (304,990) (4,165,398) 2012 (3,449,106) 340,130 - - (704,000) (304,990) (4,117,966) 2013 (3,405,317) 509,382 (18,286) - (704,000) (304,990) (3,923,211) 2014 (2,794,175) 574,306 - - (704,000) (304,990) (3,228,859) 2015 (2,550,219) 651,887 (1,509,980) - (712,870) (304,990) (4,426,172) 2016 (2,939,130) 637,625 - - (704,000) (304,990) (3,310,495) 2017 (2,892,029) 718,486 2,411,801 - (704,000) (304,990) (770,732)
Notes:a Net of capitalized amounts.
Last Ten Fiscal Years
56
Annual Capital Contributions From Developers
Macon Water Authority
Contributed ContributedFiscal Water Lines Sewer LinesYear and Other and Other Total
2008 795,298$ a 1,134,250$ a 1,929,548$ 2009 152,295 b 658,293 b 810,588 2010 23,000 c 365,401 c 388,401 2011 - d 86,493 d 86,493 2012 40,942 261,612 302,554 2013 - 47,945 47,945 2014 202,825 35,984 238,809 2015 358,161 553,179 911,340 2016 179,060 - 179,060 2017 118,826 - 118,826
Notes:
as many other areas of the country.
d Development in FY 2011 continued to slow down due to economic conditions.
Last Ten Fiscal Years
a Development slowed down in FY 2008 although the Macon/Bibb County area was not as hard hit by the economic downturn
c Development in FY 2010 continued to slow down due to economic conditions.
b Development in FY 2009 continued to slow down due to economic conditions.
57
Water Produced, Consumed, and Wastewater Treated
Macon Water Authority
Gallons of Gallons of Gallons of Average Gallons of
Fiscal Water Water Water Percent Wastewater Base Usage Base Usage
Year Produced Consumed Unbilled Unbilled Treated Ratea Rate Rateb Rate
2008c 9,083 7,897 1,186 13.06% 12,439 7.50$ c 5.00$ c
2009d 9,111 7,456 1,655 18.17% 13,011 7.50 d 5.00 d
2010e 9,077 7,516 1,561 17.20% 11,396 7.50 e 5.00 e
2011f 9,550 7,731 1,819 19.05% 10,577 7.50 f 5.00 f
2012g 8,420 7,144 1,276 15.15% 12,706 7.50 g 6.25 g
2013h 8,146 6,279 1,867 22.92% 12,706 7.50 h 7.50 h
2014i 8,361 6,726 1,635 19.56% 11,873 8.00 i 8.00 i
2015j 8,061 6,517 1,544 19.10% 11,920 8.50 j 8.50 j
2016k 8,164 6,782 1,382 16.92% 12,370 9.00 k 9.00 k
2017l 7,826 6,775 1,051 13.43% 11,186 9.00 l 9.00 l
Notes: Gallons are presented in millions.
- $1.56 per CCF for sewer for the first 3CCF and $1.66 per CCF for consumption above 3CCF
- $1.61 per CCF for sewer for the first 3CCF and $1.71 per CCF for consumption above 3CCFf - $1.62 per CCF for water for the first 3 CCF and $1.72 per CCF consumption above 3 CCF - $1.76 per CCF for sewer for the first 3 CCF and $1.86 per CCF consumption above 3 CCFg - $1.72 per CCF for water for the first 3 CCF and $1.82 per CCF consumption above 3 CCF - $1.86 per CCF for sewer for the first 3 CCF and $1.96 per CCF consumption above 3 CCFh - $1.82 per CCF for water for the first 3 CCF and $1.96 per CCF consumption above 3 CCF - $1.96 per CCF for sewer for the first 3 CCF and $2.06 per CCF consumption above 3 CCFi - $1.90 per CCF for water for the first 3 CCF and $2.00 per CCF consumption above 3 CCF - $2.16 per CCF for sewer for the first 3 CCF and $2.26 per CCF consumption above 3 CCFj - $2.00 per CCF for water for the first 3 CCF and $2.10 per CCF consumption above 3 CCF - $2.26 per CCF for sewer for the first 3 CCF and $2.36 per CCF consumption above 3 CCFk - $2.10 per CCF for water for the first 3 CCF and $2.20 per CCF consumption above 3 CCF - $2.36 per CCF for sewer for the first 3 CCF and $2.46 per CCF consumption above 3 CCFl - $2.20 per CCF for water for the first 3 CCF and $2.30 per CCF consumption above 3 CCF - $2.46 per CCF for sewer for the first 3 CCF and $2.56 per CCF consumption above 3 CCFSince 2010, residential sewer rates are based on 80% of water consumption without an irrigation meter.Since 2010, residential sewer rates are based on 95% of water consumption with an irrigation meter.
Last Ten Fiscal Years
Water Sewer
Total Direct Rate
b Single family Residential sewage rates based on an average of lowest number of
a Rate shown is for 5/8" single family residential meters. See Water and Sewer Rates
e - $1.52 per CCF for water for first 3CCF and $1.62 per CCF consumption above 3CCF
d - $1.47 per CCF for water for first 3CCF and $1.57 per CCF consumption above 3CCF
c For the first time, the Macon Water Authority implemented a tiered rate structure as follows:
statistical pages for the rates of other meter sizes.
months depending on year in a 12-month period.
- $1.56 per CCF for sewer for the first 3CCF and $1.61 per CCF for consumption above 3CCF - $1.47 per CCF for water for the first 3CCF and $1.52 per CCF for consumption above 3CCF
58
Tap Sales
Macon Water Authority
Water
Fiscal Meter Taps Sewer Taps
Year Sold Sold Total Taps
2008 385 253 6382009 210 123 333 a
2010 214 142 356 a
2011 284 192 476 a
2012 622 331 9532013 173 94 267 b
2014 146 100 2462015 179 89 2682016 163 76 2392017 190 86 276
a
bEconomic downturn in the area led to less development and fewer tap sales.
Requests for single residential water and sewer taps decreased during FY 2013from the previous year due to the local economy.
Last Ten Fiscal Years
59
Number of Water and Sewer Customers by Type
Macon Water Authority
Fiscal
Year Residential Commercial Industrial Other Residential Commercial Industrial Other Water Sewer
2008 49,897 5,696 46 28 40,936 4,307 28 24 55,667 45,295 2009 49,906 5,793 43 36 40,944 4,360 25 36 55,778 45,365 2010 48,835 6,962 40 23 39,967 5,422 24 22 55,860 45,435 2011 a 43,971 6,144 37 12 35,606 4,721 21 11 50,164 40,359 2012 a 43,785 6,178 35 9 35,512 4,716 18 7 50,007 40,253 2013 a 43,638 6,218 31 7 35,421 4,709 15 6 49,894 40,151 2014 a 43,415 6,273 28 14 35,246 4,712 13 12 49,730 39,983 2015 a 44,681 5,246 30 9 36,422 3,678 14 8 49,966 40,122 2016 a 44,806 5,323 30 9 36,536 3,717 15 6 50,168 40,274 2017 a 44,867 5,313 29 7 36,521 3,697 18 4 50,216 40,240
Note:
a
Last Ten Fiscal Years
Water and Sewer customer counts by type include only revenue generating/billed customer accounts. In previous years, the total number of water and sewer customers by type included both revenue generating (billed) as well as non-revenue generating (non-billed/statistical) accounts.
multiple malls.Information is from customer billing records from September 30 of each year. "Commercial" includes apartments and
TotalSewerWater
60
Water and Sewer Rates
Last Ten Fiscal Years
Macon Water Authority
2008a 2009 2010 2011 2012
Single Family Residential
5/8" 7.50$ 7.50$ 7.50$ 7.50$ 7.50$ 1" 10.00 10.00 10.00 10.00 10.00 1.5" 22.50 22.50 22.50 22.50 22.50 2" 45.00 45.00 45.00 45.00 45.00 3" 67.50 67.50 67.50 67.50 67.50
Usage rate (per 100 cubic feet)0-3 CCF 1.47$ 1.47$ 1.52$ 1.62$ 1.72$ >3 CCF 1.52 1.57 1.62 1.72 1.82
Sewer Rates
Base rate5/8" 5.00$ 5.00$ 5.00$ 5.00$ 6.25$ 1" - - 6.67 6.67 7.92 1.5" - - 15.00 15.00 15.00 2" - - 30.00 30.00 30.00 3" - - 45.00 45.00 45.00
Usage rate (per 100 cubic feet)0-3 CCF 1.56$ 1.56$ 1.61$ 1.76$ 1.86$ >3 CCF 1.61 1.66 1.71 1.86 1.96
Note: Well Water Users (All Customers) have 25% Sewer Surcharge Added to cost.
separate irrigation meter and 95% of the water registered on the water meter if they have a separate irrigation meter.In 2010, customers are billed for sewer consumption charges based on 80% of water registered on the water meter if they do not have a
a Residential sewage rates based on an average of 8 months lowest usage in a 12-month period. Customers without 12-month average receive average rate of $16.12.
In 2008, the Authority went to a two tiered rate structure.
Base rate (meter size )
Water Rates -
Fiscal Year
61
2013 2014 2015 2016 2017
7.50$ 8.00$ 8.50$ 9.00$ 9.00$ 10.00 10.50 11.00 11.50 11.50 22.50 22.50 23.63 24.81 26.05 45.00 45.00 47.25 49.61 52.09 67.50 67.50 70.88 74.42 78.14
1.82$ 1.90$ 2.00$ 2.10$ 2.20$ 1.92 2.00 2.10 2.20 2.30
7.50$ 8.00$ 8.50$ 9.00$ 9.00$ 9.17 9.67 10.17 10.67 10.67
15.00 15.00 15.75 16.54 17.36 30.00 30.00 31.50 33.08 34.73 45.00 45.00 47.25 49.61 52.09
1.96$ 2.16$ 2.26$ 2.36$ 2.46$ 2.06 2.26 2.36 2.46 2.56
Fiscal Year
62
Water and Sewer Rates
Macon Water Authority
2008a 2009a 2010b 2011 2012
Water Rates -
Non-Residential
Base rate (meter size )5/8" 7.50$ 7.50$ 7.50$ 7.50$ 7.50$ 1" 10.00 10.00 10.00 10.00 10.00 1.5" 22.50 22.50 22.50 22.50 22.50 2" 45.00 45.00 45.00 45.00 45.00 3" 60.00 67.50 67.50 67.50 67.50 4" 100.00 112.50 112.50 112.50 112.50 6" 166.66 187.50 187.50 187.50 187.50 8" 266.66 300.00 300.00 300.00 300.00 10" 333.33 375.00 375.00 375.00 375.00
Usage rate (per 100 cubic feet)0-3 CCF 1.47$ 1.47$ 1.52$ 1.62$ 1.72$ >3 CCF 1.52 1.57 1.62 1.72 1.82 >0 CCF
Sewer Rates
Base rate5/8" 5.00$ 5.00$ 5.00$ 5.00$ 6.25$ 1" - - 6.67 6.67 7.92 1.5" - - 15.00 15.00 15.00 2" - - 30.00 30.00 30.00 3" - - 45.00 45.00 45.00 4" - - 75.00 75.00 75.00 6" - - 125.00 125.00 125.00 8" - - 200.00 200.00 200.00 10" - - 250.00 250.00 250.00
Usage rate (per 100 cubic feet)0-3 CCF 1.52$ 1.56$ 1.61$ 1.76$ 1.86$ >3 CCF 1.61 1.66 1.71 1.86 1.96 >0 CCF
Note: Well Water Users (All Customers) have 25% Sewer Surcharge added to cost. a 2 tier rate structure beginning in 2008.b In 2010, all non-residential water usage was billed at $1.62 per CCF and sewer at $1.71 CCF of usage. In 2010, base fees for sewer service accounts are based according to meter/service size.
Last Ten Fiscal Years
Fiscal Year
63
2013 2014 2015 2016 2017
7.50$ 8.00$ 8.50$ 9.00$ 9.00$ 10.00 10.50 11.00 11.50 11.50 22.50 22.50 23.63 24.81 26.05 45.00 45.00 47.25 49.61 52.09 67.50 67.50 70.88 74.42 78.14
112.50 112.50 118.13 124.03 130.25 187.50 187.50 196.88 206.72 217.05 300.00 300.00 315.00 330.75 347.29 375.00 375.00 393.75 413.44 434.11
1.92$ 2.00$ 2.10$ 2.20$ 2.30$
7.50$ 8.00$ 8.50$ 9.00$ 9.00$ 9.17 9.67 10.17 10.67 10.67
15.00 15.00 15.75 16.54 17.36 30.00 30.00 31.50 33.08 34.73 45.00 45.00 47.25 49.61 52.09 75.00 75.00 78.75 82.69 86.82
125.00 125.00 131.25 137.81 144.70 200.00 200.00 210.00 220.50 231.53 250.00 250.00 262.50 275.63 289.71
2.06$ 2.26$ 2.36$ 2.46$ 2.56$
Fiscal Year
64
Ten Largest Customers
Macon Water Authority
Customer Amount % Amount %
Monroe County, Georgia 714,372$ 2.69 % -$ - %Graphic Packaging International 491,489 1.85 3,375,780 14.02 Navicent Health 309,947 1.17 316,247 1.31 Macon Housing Authority 249,579 0.94 266,133 1.10 Nichiha USA, Inc. 188,795 0.71 208,034 0.86 Central Correction Institute 183,134 0.69 201,902 0.84 Coliseum Park Hospital 159,232 0.60 165,809 0.69 YKK 158,134 0.60 343,386 1.43 Kumho Tire 146,827 0.55 98,808 0.41 Armstrong World Industries 99,792 0.38 - - City of Byron, Georgia - - 370,477 1.54 Jones County Water System - - 152,059 0.63
Subtotal (10 largest) 2,701,301 10.19 5,498,635 22.83
Balance from other customers 23,813,658 89.81 18,587,172 77.17
Total 26,514,959$ 100.00 % 24,085,807$ 100.00 %
Customer Amount % Amount %
Monroe County, Georgia 960,764$ 4.41 % 16,464$ 0.10 %Graphic Packaging International 348,012 1.60 1,620,117 10.16Macon Housing Authority 278,707 1.28 254,591 1.60YKK AP America, Inc. 264,014 1.21 255,938 1.60Medical Center of Central Georgia 208,472 0.96 212,261 1.33Coliseum Park Hospital 118,382 0.54 123,029 0.77Central Correction Institute 98,743 0.45 101,415 0.64Armstrong World Industries 80,213 0.37 4,484 0.03Colonial Macon Mall 78,148 0.36 61,342 0.38City of Macon 47,925 0.22 30,873 0.19
Subtotal (10 largest) 2,483,380 11.40 2,680,514 16.81
Balance from other customers 19,306,848 88.60 13,266,190 83.19
Total 21,790,228$ 100.00 % 15,946,704$ 100.00 %
Note: Dollar values reflected include base rate charges, as well as multiple meters on various accounts.
Current Year and Nine Years Ago
Fiscal Year 2017
Water Revenue Sewer Revenue
Water Revenue Sewer Revenue
Fiscal Year 2008
65
Outstanding Debt by Type
Macon Water Authority
Fiscal Revenue GEFA Notes Payable/ Total Percentage of DebtYear Bonds Notes Capital Lease Amount Personal Income Per Capita
2008 75,775,000$ 6,354,582$ 11,427$ 82,141,009$ 1.62% 531$ 2009 73,055,000 5,949,149 - 79,004,149 1.59% 509 2010 86,030,000 5,894,426 - 91,924,426 1.85% 588 2011 93,500,000 6,277,155 - 99,777,155 1.82% 641 2012 88,715,000 2,976,520 - 91,691,520 1.64% 586 2013 94,080,000 2,662,932 - 96,742,932 1.69% 618 2014 89,365,000 2,337,119 - 91,702,119 1.61% 593 2015 86,864,554 2,003,803 - 88,868,357 1.55% 577 2016 91,634,315 2,993,578 273,686 94,901,579 1.61% 617 2017 82,503,004 6,783,049 193,260 89,479,313 1.52% 582
Last Ten Fiscal Years
Note: The Authority's bond covenants stipulate that it may issue debt as long as certain conditions are met. The major criterion is that thenet revenue of the system must be at least 1.2 times the amount required to be paid into the Sinking Fund in the then current Sinking FundYear.
66
Pledged Revenue Coverage
Macon Water Authority
Less:
Operating
Expenses Net
Fiscal Operating Interest Gross (Excluding Available Coverage
Year Revenues Income Revenues Depreciation) Revenues Principal Interest Total Ratio
2008 42,625,993$ 2,387,510$ 45,013,503$ 24,832,827$ 20,180,676$ 5,950,000$ 3,406,552$ 9,356,552$ 2.16
2009 40,730,088 746,472 41,476,560 25,080,185 16,396,375 2,720,000 a 2,676,292 5,396,292 3.04
2010 41,588,125 622,996 42,211,121 26,019,328 16,191,793 3,255,000 b 2,442,286 5,697,286 2.84
2011 46,663,328 458,000 47,121,328 26,806,566 20,314,762 3,140,000 c 3,180,610 6,320,610 3.21
2012 45,540,148 340,130 45,880,278 27,208,856 18,671,422 4,785,000 2,995,015 7,780,015 2.40
2013 42,516,386 509,382 43,025,768 29,431,787 13,593,981 4,635,000 2,866,205 7,501,205 1.81
2014 47,448,075 574,306 48,022,381 28,715,914 19,306,467 4,715,000 2,694,495 7,409,495 2.61
2015 50,029,863 651,887 50,681,750 31,210,386 19,471,364 4,665,000 2,522,474 7,187,474 2.71
2016 52,123,494 637,625 52,761,119 32,938,605 19,822,514 4,830,000 2,649,946 7,479,946 2.65
2017 54,190,163 718,486 54,908,649 35,036,428 19,872,221 5,045,000 d 2,811,614 7,856,614 2.53
The only pledged revenue debt is Revenue Bond debt. a During 2009, $17,995,000 of bonds were issued and the funds were used to retire other bond issuances. This amount is
not reflected in the debt service for the year.b During 2010, $34,225,000 of bonds were issued and the funds were used to retire other bond issuances. This amount is
not reflected in the debt service for the year.c During 2011, $33,900,000 of bonds were issued and the funds were used to retire other bond issuances. This amount is
not reflected in the debt service for the year.d During 2017, $9,475,000 of bonds were issued and the funds were used to retire other bond issuances. This amount is
not reflected in the debt service for the year.
Debt Service
Last Ten Fiscal Years
Note:
67
Demographic and Economic Statistics
Fiscal
Year
2008 $ $2009 d
2010 d
2011 d
2012 d
2013 e
2014201520162017
a Source: U. S. Census Bureau, Bureau of Economic Analysis, and Bibb County (Georgia) School District. Figures are for the prior calendar year.b Source: Bureau of Economic Analysis, and Bibb County (Georgia) School District. Figures are for the prior calendar year.c Source: Georgia Department of Labor, U.S. Bureau of Labor Statistics, and Bibb County (Georgia) School District. Figures for 2017 are through November of 2017.d Substantial increase in the unemployment rate is due to the collapse of the local, state, national and international (global) economies related to the downturn in housing, financial and other related industries.e Unemployment rate improving with overall economy.
152,760 6,008,761 39,335 4.9%
156,460
153,721
154,721
5.6%6.4%7.6%
155,216154,709
37,199
5,476,147
36,577156,433156,462
155,5475,580,917 35,676
35,312
153,905 5,725,181
32,70134,70335,133
5,062,3124,956,7804,972,280
38,379
36,738
5,899,611
5,722,9645,684,094
Macon Water Authority
Personal
Populationa
Per Capita
Income
(Thousands)b
Last Ten Fiscal Years
Ratec
Unemployment
Incomeb
Personal
6.7%
7.6%
10.2%10.7%10.9%9.6%
68
Percentage Percentageof Total of Total
Employer Employeesa Ranka Employmentb Employeesc Rankc Employmentc
GEICO 5,890 1 6.54% 3,578 3 4.27%Navicent Health Medical Center 5,763 2 6.39% 5,651 1 6.75%Macon-Bibb County Board of Education 4,500 3 4.99% 3,780 2 4.51%Macon-Bibb County* 1,786 4 1.98%Coliseum Health Systems 1,200 5 1.33% 1,264 6 1.51%Mercer University 1,001 6 1.11% 1,370 4 1.64%Georgia Farm Bureau 790 7 0.88%YKK (USA), Inc. 600 8 0.67% 682 8 0.81%Graphic Packaging International 500 9 0.55%United States Postal Service 531 10 0.59% 642 9 0.77%City of Macon, Georgia 1,350 5 1.61%Bibb County, Georgia 979 7 1.17%The Boeing Company 547 10 0.65%
22,561 25.03% 19,843 23.69%
a Source: Macon-Bibb County, Georgia CAFR for FY2017b Source: Bureau of Economic Analysis - 90,130c Source: Macon Water Authority CAFR for FY2008* Source: Consolidated as of 1/1/14
2017 2008
Current Year and Nine Years Ago
Principal Employers
Macon Water Authority
69
Number of Employees by Identifiable Activity
2008 2009 2010 2011 2012
Water PlantWater Plant Operations 16 13 13 13 13 Buildings & Grounds 12 8 7 7 7
Water Distribution 41 37 26 27 27
Maintenance - 23 24 19 21
Water ReclamationLower Poplar WPCP 16 12 12 11 11 Rocky Creek WPCP 14 10 9 9 9 Laboratory 6 5 6 6 6
Sewer Conveyance 30 25 25 24 25
Billing/Customer Service/Meter Reading 45 46 51 52 52
Engineering 19 17 13 14 14
Administration:Human Resources 3 3 3 3 3 Finance/ Accounting/ Warehouse 5 8 8 8 8 IT 3 3 3 3 3 Macon Soils Inc. 5 5 5 5 5 Executive Administrator 2 2 2 2 2
Total Employees: 217 217 207 203 206
Note: All managers or directors are included with their divisions.
Macon Water Authority
Full-Time-Equivalent Employees as of September 30,
Last Ten Fiscal Years
70
2013 2014 2015 2016 2017
13 13 12 12 12 7 6 6 6 6
30 33 33 36 36
20 21 21 21 23
11 11 11 11 9 10 11 11 11 10 4 5 6 6 6
25 25 25 25 27
51 50 47 49 51
15 15 16 16 16
3 4 4 4 4 8 9 10 10 10 3 3 4 4 4 5 5 5 5 4 2 3 2 2 3
207 214 213 218 221
Full-Time-Equivalent Employees as of September 30,
71
Operating and Capital Indicators
Macon Water Authority
2008 2009 2010 2011 2012
Water SystemNumber of Treatment facilities 1 1 1 1 1Maximum MGD facility is capable of treating 60 60 60 60 60Maximum Water storage capacity (millions of gallons) 35.43 35.43 36.90 36.90 36.90Volume of water in Lucas Lake Reservoir(millions of gallons) 5,900 5,900 5,900 5,900 5,900Miles of water mains & lines 1,663 1,664 1,664 1,664 1,664Maximum gallons of water permitted to withdraw from Ocmulgee River per day (millions of gallons) 110 110 110 110 110Maximum gallons of water permitted to withdraw from Ocmulgee River per day (millions of gallons) 35 35 35 35 35
Water ReclamationMiles of sanitary sewer lines 738 739 740 740 740 Miles of interceptor lines 220 220 220 220 220 Number of treatment plants 2 2 2 2 2 Treatment capacity (MGD) 44 44 44 44 44Amount treated annually (millions of gallons) 11,832 12,439 13,011 11,396 10,577Number of major pumping stations 7 7 7 7 7 Unused capacity (millions of gallons) 4,228 3,621 3,049 4,664 5,483 Percentage of capacity utilized 73.67% 77.45% 81.02% 70.96% 65.90%
Note: MGD = millions of gallons per day. Additional operating indicators can be found on other statistical pages.
Fiscal Year
Last Ten Fiscal Years
72
2013 2014 2015 2016 2017
1 1 1 1 160 60 60 60 60
36.90 36.90 36.90 36.90 36.90
5,900 5,900 5,900 5,900 5,9001,664 1,664 1,664 1,664 1,665
110 110 110 110 110
35 35 35 35 35
740 740 744 744 744 220 220 220 220 220
2 2 2 2 2 44 48 48 48 48
12,706 11,813 11,920 12,370 11,1867 7 7 7 7
3,354 5,647 5,600 5,150 6,347 79.10% 67.76% 68.04% 70.60% 63.80%
Fiscal Year
Comprehensive Annual Financial Report
COMPLIANCE SECTION
Macon Water Authority – Macon Georgia
300 MULBERRY STREET, SUITE 300 • POST OFFICE BOX 1877 • MACON, GEORGIA 31202-1877 • 478-464-8000 • FAX 478-464-8051 • www.mjcpa.com MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To Macon Water Authority
Macon, Georgia We have audited, in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States, the financial statements of the Macon Water Authority (the “Authority”)
as of and for the year ended September 30, 2017, and the related notes to the financial statements, which
collectively comprise the Macon Water Authority’s basic financial statements and have issued our report thereon
dated February 28, 2018.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Authority’s internal control
over financial reporting (internal control) to determine the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of
expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, we do not express an
opinion on the effectiveness of the Authority’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent or detect and correct
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal
control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements
will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
74
Our consideration of internal control was for the limited purpose described in the first paragraph of this section
and was not designed to identify all deficiencies in internal control that might be material weaknesses or
significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal
control that we consider to be material weaknesses. However, material weaknesses may exist that have not
been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Authority’s financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those provisions
was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests
disclosed no instances of noncompliance or other matters that are required to be reported under Government
Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not
suitable for any other purpose.
Macon, Georgia
February 28, 2018
300 MULBERRY STREET, SUITE 300 • POST OFFICE BOX 1877 • MACON, GEORGIA 31202-1877 • 478-464-8000 • FAX 478-464-8051 • www.mjcpa.com MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
To the Macon Water Authority
Macon, Georgia
Report on Compliance for Each Major Federal Program We have audited the Macon Water Authority’s (the “Authority”) compliance with the types of compliance
requirements described in the OMB Compliance Supplement that could have a direct and material effect on each
of the Authority’s major federal programs for the year ended September 30, 2017. The Authority’s major federal
programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and
questioned costs.
Management’s Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its
federal awards applicable to its federal programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of the Authority’s major federal programs
based on our audit of the types of compliance requirements referred to above. We conducted our audit of
compliance in accordance with auditing standards generally accepted in the United States of America; the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance requirements referred to above
that could have a direct and material effect on a major federal program occurred. An audit includes examining, on
a test basis, evidence about the Authority’s compliance with those requirements and performing such other
procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal
program. However, our audit does not provide a legal determination of the Authority’s compliance.
76
Opinion on Each Major Federal Program
In our opinion, the Authority, complied, in all material respects, with the types of compliance requirements referred
to above that could have a direct and material effect on each of its major federal programs for the year ended
September 30, 2017.
Report on Internal Control over Compliance
Management of the Authority, is responsible for establishing and maintaining effective internal control over
compliance with the types of compliance requirements referred to above. In planning and performing our audit of
compliance, we considered the Authority’s internal control over compliance with the types of requirements that
could have a direct and material effect on each major federal program to determine the auditing procedures that
are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major
federal program and to test and report on internal control over compliance in accordance with the Uniform
Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, we do not express an opinion on the effectiveness of the Authority’s internal control over
compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance
does not allow management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a
timely basis. A material weakness in internal control over compliance is a deficiency, or combination of
deficiencies, in internal control over compliance, such that there is a reasonable possibility that material
noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and
corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a
combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal
program that is less severe than a material weakness in internal control over compliance, yet important enough to
merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control over compliance that might be
material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over
compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not
been identified.
77
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of
internal control over compliance and the results of that testing based on the requirements of the Uniform
Guidance. Accordingly, this report is not suitable for any other purpose.
Macon, Georgia
February 28, 2018
78
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDSFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017
Grant Program CFDA # Grant I.D. Expenditures
U.S. Environmental Protection Agency
Passed through Georgia Environmental Facilities AuthorityClean Water State Revolving Fund Cluster
Capitalization Grants for Clean Water State Revolving Fund 66.458 CWSRF 13-010 $ 4,154,109
Total U.S. Environmental Protection Agency 4,154,109
Total Expenditures of Federal Awards $ 4,154,109
Note 1 - Basis of Presentation
Note 2 - De Minimis Indirect Cost Rate
The Macon Water Authority elected not to use the ten percent de minimis indirect cost rate.
Note 3 - Non-Cash Awards
The Authority did not receive non-cash federal awards during the year ended September 30, 2017.
Note 4 - Subrecipients
The Authority did not pass through any funds to subreceipients during the year ended September 30, 2017.
MACON WATER AUTHORITY
The schedule of expenditures of federal awards includes the federal grant activity of the Macon Water Authority and is presented on theaccrual basis of accounting.
The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR)Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards . Therefore, someamounts presented in this schedule may differ from amounts presented in, or used in the preparation of the financial statements.
79
MACON WATER AUTHORITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED SEPTEMBER 30, 2017
SECTION I
SUMMARY OF AUDIT RESULTS
Financial Statements Type of auditor’s report issued Unmodified Internal control over financial reporting: Material weaknesses identified? Yes X No Significant deficiencies identified not considered to be material weaknesses? Yes X None Reported Noncompliance material to financial statements noted? Yes X No Federal Awards Internal Control over major programs: Material weaknesses identified? Yes X No Reportable conditions identified not considered to be material weaknesses? Yes X None Reported Type of auditor’s report issued on compliance for major programs Unmodified Any audit findings disclosed that are required to be reported in accordance with the Uniform Guidance? Yes X No Identification of major programs: CFDA Number Name of Federal Program or Cluster 66.458 U.S. Environmental Protection Agency Capitalization Grants for Clean Water State Revolving Funds Dollar threshold used to distinguish between Type A and Type B programs: $750,000 Auditee qualified as low-risk auditee? Yes X No
80
MACON WATER AUTHORITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED SEPTEMBER 30, 2017
SECTION II FINANCIAL STATEMENT FINDINGS AND RESPONSES
None reported.
SECTION III FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS
None reported.